The first things that should be noted are the recent agreements between the presidents of EDF and Gazprom on the South Stream project. Also, there are some plans for negotiations and discussions between EU representatives and Russian officials regarding the South Stream project. So the first point is that, apparently, a great deal of progress has been made in the timely implementation of the South Stream project.
Second, it is very important to view this new progress within the context of a larger framework. As you know, there are always many obstacles to be faced and many positions to consider with regard to any big energy project, and, obviously, there is the issue of the relationship between the two main projects, which are, namely, South Stream and Nabucco.
Third, it is very important to remember that gas pipeline projects are like a chain, and they require every single link to be in place in order to work. That means that many different components of a pipeline project must be efficiently managed. So, I think that we should acknowledge this progress, but we must also keep in mind that any energy project, such as South Stream or Nabucco, is in its own right very complicated.
At this stage, I think that the initiative and the dynamism seem to be focused on the South Stream project, whereas the Nabucco project was postponed to 2017 and is therefore lagging behind its initial schedule. But, at the same time, I think it’s again important to understand that, while there are obviously some political considerations involved in any energy project, there are also business problems that need to be addressed – not only for Nabucco but also for South Stream. The financial arrangements in particular need to be discussed.
My conclusion is that although we can see, without a doubt, that some real progress has been made on the South Stream project recently – and I don’t think that the Nabucco project is over either – there is a certain degree of competition between the two projects, and each of them needs to be built up – certainly with a political program, but also with regard to deeper business considerations.
