Putin Kills "South Stream" Pipeline, Will Build New Massive Pipeline To Turkey Instead

Tyler Durden's picture




 

In retrospect, it should have been obvious in August.

Back then we wrote that the EU's poorest member nation, Bulgaria, had been an enthusiastic supporter of the Russian-backed South Stream gas pipeline project, whose construction has stoked tensions between the West and Moscow as it enabled gas supply to bypass troubled Ukraine (thus squeezing the desparate economy back into Russia's hands). In early June, Bulgaria's Prime Minister Plamen Oresharski ordered an initial halt (after Europe offered the nation's suddenly collapsing banking system a lifeline). Subsequently, Energy Minister Vasil Shtonov has ordered Bulgaria’s Energy Holding to halt any actions in regards of the project as it does not meet the requirements of the European Commission.

And then, just to send Putin a very clear message where the allegiances of this former Soviet satellite nation lie, NATO deployed 12 F-15s and 180 troops to Bulgaria's Graf Ignatievo Air Base.

 

A dozen F-15s and approximately 180 personnel from the 493rd, based at RAF Lakenheath, England, have deployed to Graf Ignatievo Air Base to participate in a two-week bilateral training exercise with the Bulgarian air force, Pentagon spokesmen Col. Steve Warren told reporters Monday.

 

The exercise began Monday and will continue through Sept. 1.

 

The purpose of the deployment is to “conduct training and focus on maintain joint readiness while building interoperability,” Warren said.

 

The move comes at a time when America’s Eastern European partners and allies are concerned about Russian military intervention in Ukraine. There are fears that Moscow might try to destabilize other countries in the region.

 

“This is a reflection of our steadfast commitment to enhancing regional security,” Warren said about the exercise.

We concluded as follows: "How will Putin react one wonders?"

We now have the answer: earlier today, in a stunning announcement, Putin revealed that the South Stream project is now finished. As the WSJ reports, "Putin said Moscow will stop pursuing Gazprom’s South Stream pipeline project that would supply natural gas to Europe with an underwater link to Bulgaria, blaming the European Union for scuttling the project."

“We couldn’t get necessary permissions from Bulgaria, so we cannot continue with the project. We can’t make all the investment just to be stopped at the Bulgarian border,” Mr. Putin said. “Of course, this is the choice of our friends in Europe.”

 

“We think that the European Commission’s position was not constructive,” Mr. Putin said. “If Europe does not want to implement it, it will not be implemented.”

Putin is right: Europe - Austria excluded - had seen rising resistance to the South Stream in recent months as the crisis in Ukraine has intensified. The EU is concerned that the project would cement Russia’s position as Europe’s dominant supplier of natural gas. Russia already meets around 30% of Europe’s annual needs.

So what does Putin do? He signs a strategic alliance with NATO member Turkey, the only country in Europe that is anything but European (over the endless veto of Germany preventing its entrance into the EU over fears of cheap, migrant labor) and which lately has been increasingly anti-Western, to build a new mega-pipeline to Turkey instead. As RT reports, Gazprom CEO Aleksey Miller said the energy giant will build a massive gas pipeline that will travel from Russia, transit through Turkey, and stop at the Greek border – giving Russia access to the Southern European market. In effect, Russia will still have access to the Southern Stream endmarkets

The pipeline will have an annual capacity of 63 billion cubic meters. A total of 14 bcm will be delivered to Turkey, which is Gazprom’s second biggest customer in the region after Germany.

 

Russia’s energy minister Aleksandr Novak said that the new project will include a specially-constructed hub on the Turkish-Greek border for customers in southern Europe.

In a joint press conference between Putin and Turkish leader Erdogan, the Russian said that the supply of Russian gas to Turkey will be raised by 3 billion cubic meters via the already operating Blue Stream pipeline, Last year, 13.7 bcm of gas was supplied to Turkeyvia Blue Stream, according to Reuters.

And another fringe benefit of becoming a preferred Russian ally: Moscow will reduce the gas price for Turkish customers by 6 percent from January 1, 2015, Putin said. Later, Novak said the discount could reach 15 percent, subject to negotiations. Sorry Ukraine.

And sorry Bulgaria, which despite being wholly reliant on Russian gas for its commercial, industrial and residential needs, has decided to side with the sinking European Union, making it merely the latest insolvent vassal state of the sinking Eurozone, something Putin made abundantly clear during today's conference:

  • PUTIN: BULGARIA UNABLE TO ACT AS SOVEREIGN STATE OVER GAS LINK
  • PUTIN: RUSSIA TO REORIENT ENERGY RESOURCES TO OTHER MKTS: IFX

Bulgaria should now expect its gas costs to boldly go where Ukrainian energy prices have so boldly gone before.

As for Turkey, the country that bridges Europe with Asia is merely the latest expansion of Putin's anti-dollar alliance:

  • TURKEY, RUSSIA AGREE TO USE LOCAL CURRENCIES IN TRADE: TRT

Or, as Obama would put it, Russia just got even more "isolated."

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Mon, 12/01/2014 - 21:37 | 5506898 Hulk
Hulk's picture

This Putin fellow must be stopped before his free market capitalism spreads to the West !!!

Mon, 12/01/2014 - 22:07 | 5507036 Publicus
Publicus's picture

To save NATO, the US must be kicked out.

Mon, 12/01/2014 - 22:18 | 5507084 Save_America1st
Save_America1st's picture

so Turkey was just bribed earlier today to allow the U.S./NATO to use their bases to establish a no-fly zone over part of Syria.  Now this with Russia?

 

could Turkey be up for bribes from the highest bidder/biggest threat or what? 

 

pssssst...hey, Turkey...it's kinda obvious you're a slut. 

Mon, 12/01/2014 - 22:31 | 5507146 Thirtyseven
Thirtyseven's picture

Of course, why do you think they allied themselves with the West in the first place?  USA didn't get to station nuclear missiles on Turkish soil for no kickbacks.

 

Turkey has always been it's own regional power, they were just temporarily weakened by Ottoman excesses.  With Russia moving closer and closer to regional power Germany, too, it looks like the oligarchs of the west are done.

Mon, 12/01/2014 - 22:35 | 5507155 Publicus
Publicus's picture

China will make it all possible.

Tue, 12/02/2014 - 02:00 | 5507603 whotookmyalias
whotookmyalias's picture

If Turkey didn't control the only way in and out of the Black Sea, they would mirror Lebanon in strategic value and stability.

Tue, 12/02/2014 - 02:07 | 5507608 Liberal
Liberal's picture

As a staunch liberal, I'm really lost here.
Didn't President Obama just pardon Turkey?
Why would Turkey do this?
Is Turkey racist?

Tue, 12/02/2014 - 16:20 | 5509974 SDShack
SDShack's picture

Wasn't the whole Cuban Missle Crisis really caused by the refusal of the West to remove outmoded nuke missles from Turkey, leading to Krushev to move nuke missles to Cuba? And the crisis was only "solved" be actually removing the Turkish Nukes AND the Cuban Nukes. Now it's gas wars instead of nuke wars, but Turkey is still the central player. History ryhmes again.

Mon, 12/01/2014 - 22:33 | 5507149 Stoploss
Stoploss's picture

A dozen F-15s and approximately 180 personnel from the 493rd, based at RAF Lakenheath,

Watch out Vlad.  A whopping 12 jets and one hundred-eighty personnel.  Try not to be too scared.

 

Since everyone in the poliburo is too stupid to notice, this move right here, will go down in global history, and ring clear for the next century if it truly goes thru. 

Brrrr.

NOW, global warming is desperately needed to keep Europe from turning from a turd, into a frozen turd that won't flush! LOL!!!

Tue, 12/02/2014 - 02:26 | 5507634 Lore
Lore's picture

No offense, but FUCK THAT. 

Tue, 12/02/2014 - 01:00 | 5507519 SAT 800
SAT 800's picture

!!! That;s pretty funny. I liked the part about the pipeline in Bulgaria not meeting European Commission standards. Nothing meets European Commission standards unless it's pre-approved from Washington; or else somebodies private phone calls and e-mails are going to appear in the newspaper; or at least that's the way it seems to me.

Tue, 12/02/2014 - 04:53 | 5507745 luckylongshot
luckylongshot's picture

Even better NATO should be disbanded as there is no copmmunist threat any more.

Tue, 12/02/2014 - 08:24 | 5507932 Volkodav
Volkodav's picture

Not in east europe...

they moved west

Tue, 12/02/2014 - 13:22 | 5509006 drendebe10
drendebe10's picture

Fuk da gummint.  Fuk da elected ruling political elite. Fukem.

Mon, 12/01/2014 - 22:09 | 5507046 SWRichmond
SWRichmond's picture

If we dont give him what he wants he'll get something bettet.

Mon, 12/01/2014 - 22:15 | 5507087 Againstthelie
Againstthelie's picture

That's the same logic as this one:

The EU is concerned that the project would cement Russia’s position as Europe’s dominant supplier of natural gas.

So reducing the supply possibilities and be dependent on USrael vassal and bancrupt gas-blackmailer Ukraine improves Europe's position?! LOL.

Typical City of London and New York propaganda BS that prooves how extremely the EU is controlled by alien interests and not continental European interests.

Mon, 12/01/2014 - 22:30 | 5507143 SWRichmond
SWRichmond's picture

I'm pretty sure you missed my point...

Mon, 12/01/2014 - 22:39 | 5507151 THE DORK OF CORK
THE DORK OF CORK's picture

Russia is acting as a nation state.

A  Marxist would call it a national capitalistic monopoly.

 

I would call it the 7th circle of hell.

Violence.

 

Europe is acting as a market state vassal of general externalized financial capital

The 9th circle.

Treason.

Mon, 12/01/2014 - 22:45 | 5507198 disabledvet
disabledvet's picture

Sounds like the Netherlands just won big.

I'm not so sure about the human race though.

Still...this doesn't make any sense either. Why does Putin need a pipeline to anywhere again?

Just attack already. Don't tell me "it's weather related" when it comes to Putin too...

Mon, 12/01/2014 - 22:59 | 5507230 Rock On Roger
Rock On Roger's picture

Can you remind me where in this article was there a reference to Netherlands?

Mon, 12/01/2014 - 23:39 | 5507355 tenpanhandle
tenpanhandle's picture

Perhaps he means it as nether-regions which were referenced (7th and 9th circles of hell) in the post he was replying to.

Tue, 12/02/2014 - 03:51 | 5507703 uistbhoy
uistbhoy's picture

he probably meant the potential for it to become an LNG hub

Tue, 12/02/2014 - 08:22 | 5507927 Volkodav
Volkodav's picture

No one seems aware how expensive LNG will be.

Need to remind of that in real.

Just cos more middlemen

But that and control is the plan

Tue, 12/02/2014 - 06:27 | 5507803 Ghordius
Ghordius's picture

nonsense, Hulk. frakking unbelievable you got 140 + for such an inexact comment. must have been the spirit of it

you wrote:"This Putin fellow must be stopped before his free market capitalism spreads to the West !!!"

Putin is not a champion of "free market capitalism". the correct term for what he is championing is state capitalism

evidence: Gazprom. 445'000 employees, making it the biggest employer of Russia after the Russian military. 50% of the stocks are in the hands of the state

when Gazprom sneezes, Russia catches a cold. meanwhile, Gazprom's pipelines and interests are Russian national interests

it is still a form capitalism, but this one agent can't be permitted to fail, a form of TBTF. and don't get me started on prices and market neutrality

Tue, 12/02/2014 - 07:12 | 5507835 winchester
winchester's picture

man, it was 2nd degree humor, the concept is to tell exact opposite of the reality as a sarcasm.

 

you should go out and take a breath

Mon, 12/01/2014 - 21:38 | 5506902 Transformer
Transformer's picture

That damned Putin.  Washington would be so much better off if he was gone.

Mon, 12/01/2014 - 21:39 | 5506915 kowalli
kowalli's picture

today - Barack Obama and Donald Tusk did not exclude further deepening sanctions against Russia

Mon, 12/01/2014 - 22:34 | 5507157 Thirtyseven
Thirtyseven's picture

I hope Poland embraces it's Slavic heritage one day and allies with it's big cousin to the east.

With Germany becoming Russia's ally, not just economically, but politically as well they may have no reasonable choice. 

But don't let reason sideline the Poles from hoisting our own petards, we are some stubborn bastards.

Mon, 12/01/2014 - 22:52 | 5507216 Joe Trader
Joe Trader's picture

russia can "allie" itself with Poland's JASSM missiles...very soon. No other country is arming itself like Poland....leopard 2A5s,F-16,F-35, apache, blackhawks, $40B wisla anti-air system, lech walesa's interest in Polish nukes..

JASSM procurement is no joke...a russian af base in belarus had to be moved further east.

add in the lng port on the german border, NATO article 5...& you putin pussies can eat shit

Mon, 12/01/2014 - 23:07 | 5507262 ChanceIs
ChanceIs's picture

I shall have to go back and read James Michner's "Poland."  I don't recall them being too closely related to those living east of them.  (The Tatars always used to overrun the place and that always ends up with relations.)  What I recall for sure is that Poland is very flat and basically has no natural defenses - mountain ranges, rivers etc.  It just gets overrun.  I feel for them.

As I recall, the last time Germany, Russia and Poland were together in a deal, it was Hitler and Stalin deciding how much each would get of Poland.  Poland's hope is anti-symmetric warfare.  Kind of like what Russia attempts with the US - a $2 million sunburst (?) missile taking out a $300 million US warship.  Poland needs to be buying all of the A-10 Warthogs which the Air Force wants to get rid of so that Lockheed-Martin can build a new fleet of more expensove and less efficient aircraft to further improve Russia's leverage in the asymmetric warfare scenario.  Congress at least sees the sense in keeping the A10.  I read that we just sent a lot of them to fight ISIS.

Mon, 12/01/2014 - 23:19 | 5507292 tired1
tired1's picture

Any ideas on how long before ISIS is using those A 10's and what the supply chain will be?

Tue, 12/02/2014 - 06:01 | 5507795 Latina Lover
Latina Lover's picture

Joe Trader   Poland as a major power, standing up to Russia.... I just shit myself laughing.

 

Poland is nothing more than a whore to America, giving the USSA endless blowjobs for the right to be blown, Russian style.

Tue, 12/02/2014 - 08:18 | 5507919 Volkodav
Volkodav's picture

Poland is always on the wrong side of everything

 

Tue, 12/02/2014 - 11:17 | 5508434 WTFisThat
WTFisThat's picture

And thats why Poland has tendency to disappear from time to time from the map of Europe, no kidding.

Tue, 12/02/2014 - 02:03 | 5507605 tvdog
tvdog's picture

"What I recall for sure is that Poland is very flat and basically has no natural defenses - mountain ranges, rivers etc."

Now that's not entirely true - there are mountains in the south of Poland. It could easily defend itself from attack by Slovakia.

Tue, 12/02/2014 - 04:13 | 5507719 Invinciblehandaxe
Invinciblehandaxe's picture

not so fast my friend

Slovakia did attack poland in retalation to Poland's attack

during WW2

 

right now though Slovakia cannot attack jack shit

 

since there are like 3-4 old russian jets available in operational conditions

Tue, 12/02/2014 - 07:44 | 5507871 weburke
weburke's picture

and who does it defend itself against when a faked flight allegedly containing already murdered polish govt patriots takes out the whole core of the independent minded polish govt? a non existant cloud of volcano dust causes a nice distraction, ect ect. what independent minded polish govt can anyone talk about ?

Mon, 12/01/2014 - 23:11 | 5507273 Freddie
Freddie's picture

Wow NATO and the US of Obala must really hate the Poles.  The F-35 is an incredibly expensive piece of shit.

The USA is now Ferguson and Trayvonville, open borders third world state.  Keep watching TV and Hollywood to support the destruction of the USA.

Pierre Sprey talking about how bad the F-35 is.  He helped design the f-16 and A-10 with Colonel Boyd.  I doubt you know who Col. Boyd is or was. RIP.

https://www.youtube.com/watch?v=mxDSiwqM2nw

Tue, 12/02/2014 - 03:26 | 5507678 Lore
Lore's picture

Freddie:  You just made my night. I'm forwarding that vid to a local militroid who insists stubbornly that the F-35 is God's ticket for American air supremacy.

Canada's PM Harper risks looking like a boob for approving procurement of this LEMON despite all evidence that we are being F'd.

F’d: How the U.S. and Its Allies Got Stuck with the World’s Worst New Warplane (Medium.com, 13-Aug-2013)

Pentagon briefing suggests Canada about to buy at least four F-35 jets (G&M, 7-Nov-2014)

Tue, 12/02/2014 - 05:58 | 5507792 Idaho potato head
Idaho potato head's picture

Per Pierre Spray the F35 would be perfect for Poland....

Tue, 12/02/2014 - 12:56 | 5508860 morty_schatzberg
morty_schatzberg's picture

The U.S. is a de facto Israeli protectorate. Hence the open borders. Too bad it can't last.

Mon, 12/01/2014 - 23:44 | 5507374 alrightee_then
alrightee_then's picture

Because sanctions are a lie especially amongst friends like the U.S. and Russia

http://newworldorderg20.wordpress.com/category/sanctions-on-russia-meaningless/

Mon, 12/01/2014 - 21:41 | 5506920 jtg
jtg's picture

Europe would be better off if the US was gone.

Mon, 12/01/2014 - 21:54 | 5506978 jcaz
jcaz's picture

..Then quit buying our shit,  selling us your shit-  simple.

Tue, 12/02/2014 - 07:15 | 5507836 winchester
winchester's picture

technically it is you who design the shit but you assembly em in  east china, get stuff back to usa and sell thru ebay... when i understood that, i  started buying directly from aliexpress.

 

a 2000$  scope rifle bought for 60€ with same spec.

 

should i have to tell more about my thinking of your economy?

Tue, 12/02/2014 - 12:57 | 5508872 morty_schatzberg
morty_schatzberg's picture

I thought gun rights were all but non-existent in Europe/Canada/Australia. Do Tell.

Tue, 12/02/2014 - 01:55 | 5507593 Titus
Titus's picture

With everyon one of your posts I feel ZH gots the herp.

Mon, 12/01/2014 - 21:37 | 5506908 IridiumRebel
IridiumRebel's picture

Putin pulls the chess move. Europe will need to find a nice shale deposit somehere.....

It's heating up.

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