Russia's Gazprom has suspended construction of its Turkish Stream pipeline after Turkey downed a Russian warplane. Russia's Energy Minister Alexander Novak stated: "The negotiations have been suspended."
Turkish Stream
The pipeline is set to transport 63 billion m3 of natural gas from Russia to south Europe, passing through Turkey. The project was meant to replace the South Steam pipeline, which was cancelled last year due to geopolitical tensions as it was supposed to run through Ukraine.
The dispute
On 24 November, the Turkish air force shot down a Russian warplane near the Turkish-Syrian border. Whilst Turkey is adamant that they gave warning to the aircraft that it was passing into Turkish air space, Russia insists that it was in Syria.
Consequences
Should the pipeline be cancelled, both Russia and Turkey will be affected by it. Russia is economically dependent on selling its energy – its sales of oil and gas provide almost half of the government’s revenue. As for Turkey, they are Russia’s biggest buyers and consumers of natural gas, without which they would have none.
Resolution?
Sberbank CIB analyst, Valery Nesterov, stated: “This is a negative event for Gazprom. The project has been postponed – maybe for a year. But I don't think [it will be suspended] for more than two years.”
Edited from various sources by Stephanie Roker
Sources: International Business Times, DW, CNN, Al Arabiya News
Read the article online at: https://www.worldpipelines.com/project-news/04122015/turkish-stream-pipeline-suspended-again/
