Russia and Hungary have agreed to build a gas pipeline bypassing Ukraine.
Yesterday, Hungary's Prime Minister Ferenc Gyurcsány arrived in Moscow to meet with Prime Minister Vladimir Putin. The parties discussed the construction of the South Stream gas pipeline to be laid through Hungary, bypassing Ukraine. The pipeline is expected to be commissioned in 2015. A corresponding agreement was signed yesterday between Gazprom and its Hungarian partners.
The EU, however, is planning an alternative project known as Nabucco. The latter will deliver Central Asian gas to Europe via Azerbaijan and Turkey, bypassing Russia. The Hungarian Prime Minister said that Russian gas supplies to Europe had been interrupted for about ten days last winter and therefore, they wanted to ensure that Europe was not completely dependent on Russian gas. Hungary would support the pipeline bypassing Ukraine, and Europe will feel much safer if Nabucco is built, as well. It is good to have several gas pipelines, Hungary's Prime Minister said.
"Europeans were very upset to see no gas coming out of the Russian pipeline," Mr Gyurcsány said, commenting on last winter's events.
Mr Putin responded that the problem was not with Russian gas supplies, but with the transit countries. Therefore, Nabucco will not solve the problem, as it will run through several countries, Russia's Prime Minister said. As an example, he mentioned the issues with Ukraine, which were eventually resolved and a contract was signed.
"It appears, though, that some people in Ukraine have not had enough; just several days ago masked individuals, armed with submachine guns, attempted to take over the gas contract," Mr Putin said indignantly. "God knows whether the people who gave these orders were in their right mind."
"This is another reason to think about building an alternative pipeline," the Prime Minister said, referring to the South Stream.
He stressed that Russia had sufficient gas reserves to meet domestic consumption needs as well as to export gas abroad for at least another 100 years.
"We have no objections against alternative gas supply projects to Europe," Mr Putin said. "The project we are discussing (Nabucco), however, will not resolve all the issues. Unless Iran joins the project, there will not be enough gas to fill the pipeline. If this project is ever realised, we will only be happy. If, however, we fail to build the South Stream, which, frankly speaking, I doubt, Russia will be forced to liquefy gas and sell it to Europe at a 20% higher price. As a result, Europe will lose its leadership in the world economy."
"You have mentioned that you would like to receive Central Asian gas," Mr Putin said, addressing his Hungarian counterpart. "In fact, you already receive it; we purchase gas from suppliers in Central Asia at European prices, and they do not make any difference whom to sell it to. Do we really need to build a new gas pipeline, if there is already an existing one? I believe that we do not, but everything is possible, of course."
Nigina Beroyeva
