and this this is going continue in my view in two thousand and eleven and there are flawed is certainly in the sector which is which is around the circle which has a high correlation with consumer demand are flawed so there's going to the beneficiaries of that growth because it's a domino line. and that's your business update for this hour but you can always find more business stories on our web site that's r t dot com slash business stay with us.

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a report. this is. with you twenty four hours a day top stories now this hour sudan's upcoming vote on whether to become independent from the north gives hope to millions of refugees that they'll be able to go home because. why do expect to choose to split from the. thousands of. becomes one of the latest examples in

a series of unexplained mass animal deaths around the world some say it's an apocalypse in the making and others dismiss it as media. and these young recruits go through more to protect their country has been given to screw russian special forces trained to man the front lines in the fight against turner's . stories and other news for you with me in the meantime we discuss how often become the pawns in a political game spotlight is next for him on aussie. the

. rich. there. is trying to secure. the continent russia is. direct. it has its own. project which is finding support. states. that have to do. all the european continent. u.s. secretary of state's special envoy. mr richard.

europe relies on the gas from russia. households. in ukraine. who decided. to begin pumping gas in a year's time and south stream. the europeans. to begin. it will be by the end of two thousand and fourteen. hello mr morningstar thank you very much for being with us on the show my pleasure you're welcome mr morningstar first of all you were the u.s. state special envoy for european for eurasian rather energy why is this issue

of your asian energy so important for the state department that they have a special envoy to deal with these matters and you've been with it for food for for some time now wife had experience really in all aspects of it because i did work in the caspian area in the ninety's i worked with russia earlier than that with respect to various programs that we've had in russia after the breakup of the soviet union and then i was ambassador to the european union so i have a combination of experiences which made it. a good i think a pretty good fit for this position. but. our interest as we have several interests one the relationship that the united states and europe have is obviously very close our economies are fully interdependent. there are millions of european jobs

that are with american companies millions of american jobs that are with european companies. that a an energy secure europe and a strong europe economically is in our interest just as an energy secure united states is in this in europe's interest for the same reason. a lot of the work that we do with the you relates to matters such as energy efficiency new technology. g.'s the kinds of things that will benefit both the united states and the and by the way we're dealing on the same issues with russia as well as part of the energy working group that's part that is part of the by national commission between the united states. and russia the presidential binational commission so these are important issues for all of us to work together

and we are we also just to complete the answer to the question. we feel strongly that it's important that there be more resources developed in the caucasus and central asia and russia as well. that. the more the more resources that are developed it's going to be better for world markets the united states won't get a molecule of gas from the caucasus or central asia probably not a molecule of gas from russia although it's possible we could at some point be getting l. and g. from l. and g. from russia but the point is the more that's produced it will open up markets in other areas and make other markets more accessible as well for the united states for the state the energy issues in europe in your asia it sits in the comic or other political matters because energy is very politicized these days you

would deny that. well first of all certainly attack anomic. were trying to be politicized the issue and make it. and make it last and one of the ways we're trying to do that is to constructively engage with all countries on energy issues and not put it in terms of zero sum games. i'm here in moscow now i had. a very good meeting yesterday with the minister schmock go on. with other officials while i'm here and. the point that i keep trying to make is that the world is changing very quickly global global energy markets are changing we've seen shift amazing changes in the past few years with the shale becoming a big part of the united states market that opens up more liquefied natural gas for

europe. the. issues relating to demand today hopefully that's going to change in the coming years there's a global financial global financial crisis that we're all still dealing with and i think that requires us all to speak openly constructively about energy issues we may not agree all the time but the more we speak the more we speak about it the more likely we're going to come out down the road with win win kinds of solutions i'm not sure what those solutions ultimately would be but as long as we talk about it and recognize the changes that are taking place in the marketplace that's a good thing well off say years of negotiations and investment into the new book projects that have been reports that the final decision and is delayed again until the the first quarter of two thousand and eleven and some people say say that there's no future in this project i know that the american side is still optimistic

about the project is it true and what makes shell to missed. let me answer the question this way. we support the so-called southern corridor. which would be a corridor that would bring gas and oil for that matter. through the caucasus into turkey and on into europe we support that for diversification reasons that may be new book oh it could be another pipeline there are two other proposals. italy turkey greece interconnector there's a pipeline called the tap pipeline trans adriatic pipeline and ultimately the shock the nice consortium will choose that pipeline that makes the most commercial sense we like nobuko if it were totally up to us and we would certainly prefer we would prefer nobuko but yet we also understand that any pipeline has to be commercially

reasonable if it ends up if the shock the news consortium ends up picking the italy turkey greece interconnector is the first pipeline because that's the most commercially reasonable well then so be it. and one of the things though that i think that all people who are working in that region will say is that it's a question of what not if the gas becomes available but when the gas becomes available so even if the first pipeline is a smaller pipeline i believe that will be done in a framework that will allow the system to expand as more gas as more gas becomes available and ultimately it's going to be up to the shocking news consortium to decide which project it's going to choose we expect that they'll do that over the next several months richard you said in september a quote is the best option for

a new european part line that's why it's important to do everything possible to line up additional early sources of gas from iraq and elsewhere and client has the book management already found these additional sources of gas because i as far as i understand from the russian solar system from what all politicians from gasper says this is the main problem the source of gas well again it becomes a question it becomes a question of timing and if the bucco to take place in the short term. then it will be. be important to get other sources of gas iraq gas being very much of a possibility of course that's going to depend on the new government being formed to get gas from northern iraq into the so-called southern corridor will have to be agreements between the baghdad government and kurdish representatives in erbil we hope that as part of the formation of the new government that. the that that that

that may be possible but again and we've all if you look at all of my quotes in context since i've been in my position we've always taken the position that it's the southern corridor that we support if it ends up being the book oh yes that would be preferable but there are other alternatives and in the long term there's going to be a lot of gas coming from that part of the world. the morning star you said once that the here you. are critical of the politicized they against us approach and now you just repeated that you're trying to de politicize that. the european energy commission they're going to identify the russian launched south stream project as a strong rival a potential competitor to the u.s. back to become project well do you consider these two projects as rivals are all or

not well you know there's there's a debate whether that's the case and sometimes you hear of south stream being a rival others try and say that including russia. that they're not really in competition. if for example all of the gas that were to go there. all of the gas that goes into south stream is basically replacing gas that would go through ukraine then i suppose one could make the argument that they're not that they're not rivals. if in fact the gas that goes into south stream is gas that would otherwise going and otherwise go into the book oh i suppose you could argue that maybe they are there are rival so it depends on where you're looking at it and you hear different and you hear different things from different from different people says richard morningstar spotlight will be back shortly will continue this interview in less than

a minute so stay with us. oh no. no. no. no. i'm not trying to crop up and then spread it all over the country. virtually all terrorists today are muslim do we have the right to make such provoking of statements and a muslim schools have the right to exist. in new york city on our.

welcome back to spot. i'm just a reminder that my guest on the show today is the u.s. state special envoy on here asia and the g. . morningstar. prime minister putin signed an agreement with his bulgarian counterpart recently on this project do you think that we might see investments from

from western europe maybe from the united states going into this house tree i don't know i know the goal of south stream is to get more investments from western europe certainly the italian company in involved. but whether or not other companies would want to invest i can't i can't speak for those companies what if gas problem decides to take part in the book what would you say well be a reaction our position has been consistent. that if gazprom wants to take part in a bucco that that's ok with us that up to fifty percent of the gas bucco is open for competitive bidding. under the exemption from the third party. access. provisions. i'd like to see

gazprom be a supplier to the bucco i think it would be in a minority position. and but it would also show that. gazprom can participate and projects not necessarily. in a majority position but i think it would be a good thing. and one of the. as we talk constructively about where to go in the future. looking down. road maybe one solution would be for russia to be a. participant at least to some extent in the bucco it may be there for russia and ukraine and europe can solve the transit problems with respect to ukraine maybe that would make unnecessary spending large amounts of money on south street so maybe you could have

a situation where you had nord stream. modernized ukrainian system that all the parties felt comfortable with and russia participating in the southern corridor that may in the end make the most sense. looking looking down the road in this movie world. what about the shale gas that was discovered in europe well americans know a lot of shale gas do you think that if it really. is a success story. will it make because struction of need to get his pilot's license in europe or didn't i don't think so i think there's always going to be a need for new pipelines but again. as i mentioned earlier i don't think that we should over emphasize the importance of these new pipelines whether it be nobuko or south stream or whatever what's happening in europe and internally is going to be

a lot more important than than any specific pipeline shale maybe one maybe one of those factors but i think we also have to recognize that shale projects take a long time. that even if a project started today it may not you know maybe ten years before such a project we're in would be in full production. there are various issues that are that are involved. we think it's important but it should be only one part of a balanced energy strategy that the. should have along with building more interconnections more gas storage bringing in more l.n.g. . more work on renewables and sulfur and so on well speaking in warsaw recently russian president medvedev said i quote there is an opinion that particularly all russian energy projects are politicized that russia is wishing to turn

here of into an energy junkie for political gain we think that's absolute nonsense and quote who do you think rule is representing russia's gas supply as threatening to to to to europe's best interest is that this is sort of a campaign of what we're or what we're all russian politicians over estimating these these things that appear in western press. well you know i certainly hope that let me answer it this way russia is going to be a very important player in the energy market whatever happens russia is obviously has a large amount of resources both both in the gas area and in the oil area they're going to play a strong. europe is working to liberalize its market has various regulations and directives that will apply to all companies not just russian companies but any company within europe or whatever. we feel we believe

those that that be will apply those regulations and directives fairly. i think that if if gazprom and other companies. can let you know can live comfortably. within within those structures i think that gazprom will continue to and russia will continue and will continue to play a very major role i have no doubt that russia will will will play a major role so. i i really hope that these issues are not politicized become less politicized and that we can all work together towards a common end and that's one of the reasons i'm here in moscow when you say that russia is going to play a major role on the table gas and the chill market does that mean that this role is increasing that it's not. that today it is not going to be

bigger is that it would certainly a major role today and i look at i can't predict whether it's going to increase or decrease all i know is that russia is going to continue to be a major player you know i don't think any of us can accurately predict what's going to happen in energy markets over the next several years over the climate right i mean you know. to give you an example our energy information administration which was part of our department of energy every five years comes out with an energy outlook in two thousand and five it said that the united states would be major importers of liquefied natural gas now in two thousand and ten and five years they're saying well because of the shale revolution in the united states it's unlikely that the united states will import significant liquefied natural gas in

fact the united states may well become an export of liquefied natural gas which could have an effect on world markets so it really is impossible to predict all i know is that russia is going to continue to be a major player that we need to work constructively with the russian government as well as with russian companies and i know we can find solutions where everybody will come out ok. are you afraid that pressure on the gas or gas problem. on the e.u. market will. only. intensify the the copper ration of the russian gas producers with china. stop pushing pushing the russian supplies to the east rather than working with the west well first of all i think russia is going to always play a major role in the west i do think that markets all over the world are going

to become more competitive i think the european market will become more competitive look at what the effect right now is of ellen g. on on pricing with respect to your so just as you know we've always argued that europe needs to diversify i think russia's efforts to diversify are probably a problem it's probably the right thing for russia whether it be to china other parts of asia president medvedev was and. was in south korea recently and i think offered ten b.c.m. of gas to south korea that's the world that we live in today. and i think it's healthy that markets speak competitive that companies from what ever countries whether it be russia the united states europe china india wherever they may happen to be realize that they're working and operating in a competitive world that that's alternately going to be better better for consumers

. and one follow up here you mentioned the relations between russia and the ukraine the you mentioned establishing a normal working relationship in transit one of the problems in this transit is the need to modernize the ukrainian gas pipeline system was one of the options that russia is proposing is a merger between nafta gatt of ukraine and russia's gastronomy do you consider it an option and and how would how the state upon how would you react if this happens well. first of all we strongly believe the. first of all you're right i think that modernizing the ukraine transit system is is very important. that involves basically three entities three countries russia ukraine and the european union. any solution to the ukrainian transit system that meets the

needs of all three russia ukraine and the european union in an open and transparent way i think would be a very positive thing you know we know that our friends in ukraine are you know are not happy about the idea of a south stream pipeline because of the effect that it would have on the effect that it would have on france at three ukraine well what would make a south stream pipeline ultimately less necessary would be a secure transit system that met the needs of all three russia ukraine and european union scribes that through ukraine so any solution which satisfied the needs of those three again in an open and transparent way i think would be optimal and i could have vision a situation as i mentioned earlier there's a nord stream pipeline now. there could be secure transit through crane there could

be russian participation as a partner in the projects going you know coming from the south and then i think everybody could be in a win win situation now i don't think this is going to happen overnight and maybe i'm being naive when i'm realistic but let's see where we are three four five years from now because i don't think anybody can predict thank you thank you very much in just a reminder that my guest in the studio today was richard morningstar the u.s. a two state special envoy on your asian and. and that's it for the all of us here would be back with more first on comments on the ones going on in and outside russia. and take. you to. meet.