Nov 23 2007
Russia, Italy Sign Pipeline Agreement
Russia and Italy agreed to build a natural gas pipeline under the Black Sea, skirting the former Soviet republics of Ukraine and Belarus, which have recently been giving Moscow a hard time.
Details, as covered by BusinessWeek:
If completed, the $10 billion (6.74 billion euros) project would run more than 560 miles under the Black Sea and through Bulgaria. It could eventually distribute gas to northern and southern Europe, with an estimated annual capacity of 30 billion cubic meters (1.15 trillion cubic feet).
“The South Stream project is of strategic importance for Europe’s energy security,” Putin told reporters. “It is being implemented based on principles of transparency and taking into account interests of energy suppliers and consumers.”
Prodi said Russian energy and the EU go together like “vodka and caviar.” But Europe must be mindful of the ramifications of such a culinary combination. Letting Russia supply 40% of the EU’s natural gas and a third of its oil could result in a diplomatic hangover.
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