Igor Yushkov: "Everything is ready for the construction of Turkish Stream"

Another step towards the official start of the Turkish Stream project was made today by the Russian Federation Council, which approved the law on ratification of agreement between the governments of Russia and Turkey, previously adopted by the State Duma. Before the completion of all legal conditions, necessary for the construction of Turkish Stream, a leading analyst of the National Energy Security Fund, a lecturer at the Financial University under the Government of the Russian Federation, Igor Yushkov, told about prospects of this project in an interview with Vestnik Kavkaza.

- How soon will sides begin practical implementation of the Turkish Stream?

- First of all, it should be noted that the implementation of the Turkish Stream project began long ago, right now they just have to finish all pipe-laying works. Gazprom has already thought out all parts of the project: the Black Sea has already been studied, the old route of the South Stream is already prepared, just like the area where pipeline goes from Bulgaria to the south of Turkey. Now they just have to determine the exact route of the first and second lines on the territory of Turkey and allocate territory for them. Right now there are no problems, we don't have to worry about signing all the necessary documents, so everyone understands that the works should begin. 

- Are there still any conflicts between the Russian and Turkish sides?

- Everything with the first line is pretty clear, it will definitely be built, there are some disagreements between Gazprom and private Turkish gas companies that demand a discount. The thing is that when the first agreement on Turkish Stream was prepared in 2015, Gazprom promised to give Turkish companies a discount on gas for consumers. It was only natural at the time, since gas prices were quite high, more than $300 per thousand cubic meters - but now European prices are $200 per thousand cubic meters or even less. Since market conditions have changed so much, Gazprom says it can't give this discount because gas is already cheap, and Turkish companies insist that discount should still be provided. There are still disputes about it. It should be understood that both sides don't want this price conflict, since Turkey is interested in reliable gas supplies and in prospects of turning into transit country for Europe. 

- Will Turkey abandon supplies through Ukraine after the implementation of Turkish Stream?

- Every year Turkey gets about 15 billion cubic meters of Russian gas through Ukraine, Romania and Bulgaria. As soon as the first line of Turkish Stream will be finished, Turkey will receive all gas purchased from Russia directly, without intermediaries, which will improve its energy security. I think that's the reason for the construction of the first line. In addition, if both lines will be built Ukraine will lose approximately 30-32,5 billion cubic meters of transit Russian gas.

- What are the chances that the second line will be constructed?

- Turkey is interested in it, since this pipeline will also allow it to improve its status before Europeans and will provide additional leverage in the negotiations with Europe. On the other hand, Turkish part of the second line of Turkish Stream is under a big question. Despite the fact that the construction of the second pipeline through Turkey to Bulgarian border was already prescribed in the intergovernmental agreement, I'm not sure Gazprom will use this route - ideally, the company wants to build the second line using the old route of South Stream, directly to Bulgaria and then to Austria's Baumgarten through the Balkans. It will allow to supply gas without intermediaries.

We should not forget that the Europeans themselves have not decided yet in what format are they willing to accept the Turkish Stream project. And if the first line is already finished, the second one is still up to discussion.

7670 views


More Russian news

 Russia#039s Envoy: NATO strengthening in Europe is Cold War relic

Russia's Envoy: NATO strengthening in Europe is Cold War relic

NATO's strengthening in Europe has provoked a qualitative turn for the worse, the situation looks very dangerous, Russia's Permanent Representative to the alliance Alexander Grushko said during a video conference at …

 Kremlin: Europe and US should tackle their relations by themselves

Kremlin: Europe and US should tackle their relations by themselves

The European Union and the United States should sort out bilateral relations on their own, the matter does not bother Moscow, Kremlin spokesman Dmitry Peskov said, commenting on German Chancellor Angela …

Novak: no subsidy requests from Russian oil companies after extended OPEC deal

Novak: no subsidy requests from Russian oil companies after extended OPEC deal

Russian oil companies have not requested subsidies in connection with the extended Organization of the Petroleum Exporting Countries' (OPEC) agreement to cut production, Russian Energy Minister Alexander Novak said. …

Putin arrives in France to meet Macron

Putin arrives in France to meet Macron

Russian President Vladimir Putin has arrived in France to hold his first meeting with new French President Emmanuel Macron in the Palace of Versailles. The Russian and French leaders will attend a large …

Children’s decade declared in Russia

Children’s decade declared in Russia

The Children’s Decade, which will be declared in Russia in 2018-2027, according to Russian President Vladimir Putin's decree, will become a very important period, the country's Deputy Prime Minister Olga …

Kremlin on Putin-Macron talks agenda

Kremlin on Putin-Macron talks agenda

The war on terror will be an important issue on the agenda of today’s talks between Russian and French Presidents Vladimir Putin and Emmanuel Macron, Kremlin spokesman Dmitry Peskov said. "The issue of the …

Huntsman may replace Tefft as US ambassador to Russia

Huntsman may replace Tefft as US ambassador to Russia

U.S. Ambassador to Russia John Tefft, whose term expires this autumn, confirmed today that former Utah Governor Jon Huntsman may replace him. "We are waiting for Huntsman," Tefft said on the …

Putin declares Children’s Decade in Russia

Putin declares Children’s Decade in Russia

Russian President Vladimir Putin has signed a decree declaring the years 2018-2027 to be the Children’s Decade in Russia. The directive was published on the country’s Official Internet Portal of Legal Information …

Kudrin: ruble to drop by end of year if oil prices remain at current level

Kudrin: ruble to drop by end of year if oil prices remain at current level

The Russian national currency may drop to slightly more than 60 rubles per $1 by the end of this year if oil prices remain at the current level, the head of Russia’s Center for Strategic Research (CSR) and ex-Finance Minister …

G7 summit proves Russia#039s return not needed

G7 summit proves Russia's return not needed

The results of the latest Group of Seven (G7) summit in Italy showcase that Russia's return to a format is generally not needed, Russia's Permanent Representative to the European Union Vladimir Chizhov said. …

more Russian news