they faced it this is not a provocation but warn. the forces that we should see everybody you should disapprove because they have no idea about the hardships that we face. one it's. too nice to. the army. is the most precious thing in the world. is of self-sacrifice and heroism of those who understand it fully but you have to live a. real life stories from world war. one nine hundred forty five gold dot com. wealthy british style holds in.

the. markets why not. find out what's really happening to the global economy because a report on. the headlines now. greece's new finance minister takes office with a hard task of convincing people to accept the austerity cuts as a second wave of bailouts cost a shadow of the future of the eurozone nations turkey desperate to join up and now having a rethink. president criticizes the state's role in the russian economy and slams corruption for threatening the country's development speaking at the international atomic forum and since petersburg he reinstated his commitment to modernization. drastic measures to create

a better investment climate. the e.u. plans a third set of tougher sanctions against syria as a crackdown on protesters continues to be claiming at least sixteen lives on friday but some experts warn the sanctions could be paving the way for it to be a star intervention. the next star interview show spotlight talk to the leader of the south stream gas pipeline also kramer about what the new route could mean for supplies to europe. hello again and welcome to the spotlight they interview sheryl on r.t. and i'll do another one today my guest is marcel grammer russia isn't the first thing hard into the south stream pipeline a direct and independent gas shipping route to you but as the project is gaining

momentum there's criticism in some quarters that south stream is unprofitable and has no future no one to do the project leaders have to say today here's the c.e.o. of the south stream marcel primary joining us from st peters world economic forum. after the gas role between russia and ukraine left europe breezing moscow decided to develop an independent group to secure its gas supplies south three believed along the bottom of the black sea and then on into europe but critics say this pipeline will make western europe even more dependent on moscow today every fourth household on the continent in the russian gas. main stream invest a gas problem is working hard to prove that even a job like mine. is a crime or a welcome to the show thank you very much for being with us. well first of all

first of all i'd like to ask you about your presentation in brussels on the twenty fifth of may i did this presentation somehow change the attitude. towards the south or do they still have questions about the project. well i think it was a very successful event so. there was a very good price and smelt only of the many partners in the sauce. project but also of e.u. officials and service from various institutions. we consider this session success also because the european commission are confirmed the importance of energy relations and of the southeast project such. two dollars real agents and use the words this is clearly a priority also for the e.u.

and we will find good ways to work with it and to support it so i think all in all . we are now at a point where we have a good basis. and perhaps more detailed discussions. do you believe that you will succeed in getting a priority status for south stream in the e.u. that's exempting it from the european union rules requiring it to share its infrastructure with third fati. well there is an ongoing discussion between the european commission and the russian government about an overall agreement with regard to how gas infrastructure could be treated and i think we should wait and see how that agreement works out and what exactly that means for the status of the project at the same time it is clear that the

participants in the project and they represent about one third of all e.u. member states. feel very strongly along with russia that this project these are clear priority status so we're working on that or discussing it were up to mystic about. russia's energy minister mr expects to sign an agreement with the e.u. this autumn what kind of agreement could be there is russia want to have this. same preferences as nobuko for example or you ready for a compromise. we see this quite separately from whatever partners may have a arranged among themselves or wait to eat with the you member countries what we really want to make sure of is that whilst we of course respect the the legal framework within the european union when we work what we want to make sure of is

that whatever specific measures are taken do not in any way undermine the economic viability of the project for the entire duration of the operations of the function we want to have a clear stable and supported its legal and regulatory framework so that's what we're working well many experts by the way say that from the economic point of view the modernization of ukraine's gas pipeline system would be a cheaper solution than constructing a new underwater pipeline is it true or does moscow believe that ukraine has lost its credibility as a reliable partner. but i think in general the transit networks need modernization and a good example of that is also the north stream project which is now for its first stage nearing completion to great success which will also ensure stable long term

supply so a modern system and on the modern management all i can say about the ukraine situation is that it is clear that all the partners in the south stream project have collectively. agreed that. this is obvious from the actions they are taking now that it would not be wise to and tire leaders rely on the ukraine for fuel. your transit for the kind of volumes that have been going through there so far so. what that it's done sums up to is really the ukraine will likely continue to play a role in transit to europe but we will also have a modern today. and well managed transit system in the former south stream. which implies that there is going to be additional

security of supply or for your call of the south stream promises to two to pump up to sixty three billion cubic meters of gas they year do you already know the source is going to get the gas to fill the pipe. the the market in the end to the site the exact volumes work is being now done is being done out of concludes those contracts the capacity of south stream india and that means in twenty nineteen will be sixty three b.c. and you're right about that but we see it gradually increasing from a much much lower level at the end of twenty fifteen to that sixty or sixty three b.c.m. capacity about forty four years later in the end to market will be the judge though

because the contracts have to be signed. and we will see partly new gas and we will serve bharti rerouted gas gas flows that are now today still going through the ukraine it will be a mix while you're talking about this really rooted gas well the gas that's now going through fun through ukraine is. a lot of it going to be diverted into sites a south stream a significant part yet or how much. well you know significant. it's always open to interpretation what that means but. we have a basic supply scenario for south stream which says that up to two thirds of the volume going through south stream could be volume that is now going through the ukraine system. many analysts say that they expect gas from to revise south rings price tag afterward this year as the prices for

commodities like steel and cement also climb is this the reason why the publication of technical and economic assessment of the project was delayed until the the end of the year if i'm not mistaken. no i don't think there's any correlation in that respect the project is on schedule we are working hard on many different aspects including the final. conclusion of the preferred routing of the entire pipelines are spent we expect that to be ready sometime in the start water. nobuko is cheaper than south stream does it make new book more competitive in south stream. but first of all i haven't heard any firm and final numbers for i don't know google or south stream or south stream or

using a preliminary estimate which as it is likely to be only order of magnitude of ten billion euros for the offshore park and the black sea and approximately another five shore parked through the transit countries on the way to italy and austria. that's a very preliminary estimate the final budget will be available when we take the final investment decision and i think we'll have to wait and see therefore we review also. do not have a good comparison with any other projects on nabucco it is clear that a number of the participants and they have said so publicly expect much higher costs than originally estimated. and we will have to wait and see whatever they come up with when they take a final investment decision before that it is really until that point it's really

not so easy to talk about who is cheaper and more expensive the key is. if you have sufficient gas flow through the pipeline that of course significantly improves the economics and that seems to be an issue for some of the other five life projects. such as noble coal but are more have the d.v.d. but do you feel the competition from the book anyway. well i don't i don't see the sentence of competing projects they are very different in nature in a book will very heavily of course depends on the ability to get adequate gas supply large volumes of gas supply into the market through that by planning system in this ousting case the gas is available we're really talking about new infrastructure for security of supply and not about to need to find large additional suppliers large additional volumes of natural gas so in that sense

really they're not quite competing also time wise what i've read at least what we're not following a day today is that the number of partners expect to be quite a bit later than the planning we have for selves. says marcel crammer the c.e.o. of south train police joining us from st petersburg from the economic foreign spotlight will be back shortly right after a break so don't go stay away. i .

live lips a. stream cascade. and a speed of more than two hundred kilometers per. hour

. well see british scientists i think it's time to. go. to the. market.

find out what's really happening to the global economy for a no holds barred look at the global financial headlines tune in to gaza report on our. welcome back to the spotlight i'm just a reminder that my guest on the show today. crammer. of the south stream who is joining us from st petersburg from the economic forum mr krammer we started talking about about south stream about in the book about competitiveness of these two projects but as far as i understand natural gas which you pipe which you pump through the pipes also as also as competition like the new sources of gas for example the shale gas and the liquefied natural gas they are putting downward

pressure on natural gas prices is this really the trend is a true. well you know i think we have to look at the allen g. and chilled gas in quite a different way. the shale gas first of all we know the story about to us for a larger older than expected volumes of shale gas have come to the market there. we are now as an industry looking very hard at what could be the possibilities or else . where in the world and what i'm hearing about europe in that respect is that yes there are in geological terms certain possibilities it is not quite clear how complicated some of the production will be in europe it could be quite different from the us and our number of environmental issues around shale gas. which may also delays some of its development particularly in europe which is more

densely populated than most places. and we dare for have to wait and see about the general view is that we will do not expect significant volumes of shale gas to come to the markets in europe until at least twenty twenty five or beyond. there may be some production in some parts of europe before that but that would not really impact the south stream project at all and alan g. well let's wait and see it is true that we have more alan sheen receiving our minerals now in europe than we had let's say five or ten years ago that's good news it gives the market more options more flexibility. but we also have to wait and see how much of that liquefied natural gas is actually coming to europe and much of that will be kind on pricing so we'll have to wait and see i think a large modern pipeline system such as self-seeking is definitely proven to be very

competitive that's always been the case in the history of the gas industry and it will be the case with cells. that are your russian partners are russians ready to to meet this new possibilities the new challenge challenges of which we're talking because quite a quarter they are still pretty conservative then and still prefer to to make their money the old way i mean by pumping gas into europe through pipelines. well i'm not here to talk for all the companies that are in this business i'm really focusing on the south and pipeline project as such but let me say this if you have large natural resources conventional resources of natural gas that can be produced if you also have some possibilities for the to my

station within your current system much of that is likely to be economically more attractive than venturing into all kinds of new technologies that being said i am sure that russian companies including gas from will follow the developments very closely they already do that and are seriously involved in alan g. trade and in energy production they will also follow very closely what happens to shale gas but it is definitely not seen as something that they will large scale jump on in the immediate future because you have so much conventional gas that can be competitively produced a market that is still available. mr krammer you have claimed many times that the south stream is a project of european interest that what you say but this argument against sits in the european union who's interested in doing this project to is against except

ukraine force. well i will say that you know it it is obviously a project in european interest europe needs to import more gas europe wants to do that in a secure and stable manner and so safe and secure a new transit routes are obviously one way to do that on top of that you have many european companies and countries such as the southeast the east european countries directly involved and wanting to see. the project realized so i don't really doubt that this is a project of major european interest it brings good natural gas supply secure supply for the long term the ability to plan for a for a cleaner environment for renewable sensible woman soulforce so we are feeling quite strongly about that and it's not only us in the project itself but also other

companies involved now of course there will be. always people around in your somewhat differently that's fine i'm sure we can convince. i guess that turkey is giving you a headache lately can you lightness how long according to your assessment will it take to reach an agreement with the turks on laying the underwater part of the pipeline in their territorial waters. well i know there's an ongoing discussion. about certain details of the arrangements between between moscow and ankara we in the project the such are not directly involved in that so i can't really comment on it clearly also here the importance of the overall relationship. will dominate the discussion and will lead to

a good resolution in time. but is there still a risk and i've read about it in some and some analyses in the papers that the turkish position the tough position may even change the route of the south south stream pipeline may this be true. well we are looking at the overall route at the moment and determining. the fighting all. over the next few months and when that decision is being made. sure all the aspects such as the position of transit countries and others in full flow be taken into account. they see where you laying the pipe pipeline is called the black sea and some some people say that that the south stream is a project that may really turn the sea into black sea literally it's not black yet thank god that well i mean all they really she environmental risks for the

black sea i mean the little lady the underwater pipeline. is this true. well i have to say you know all the questions about the environment impact in general of the project or in specific locations have to be taken very very seriously. if you look at pipeline projects for natural gas such as no extreme but also many many others in the north sea for example the norwegian sector the british actor etc and elsewhere in the world you can really say that transporting natural gas in a biplane. is not in itself at all survivors exercise now that being said for the specific route you have to of course of void any negative impact on the seabed and on the environment where you can but

transporting. through. an area such as the black sea in itself is a perfectly safe activity. when will the final agreements one movie be signed with. the false and also the winter shall the french and the german companies about the condition of their put the separation in your project. well they're working hard together. to. resolve. some outstanding issues this is a large and complex project so naturally as has been the case in other projects this takes some time but i am called for than. none of them wants to take it any longer than necessary so we're looking forward to the conclusion but it's not in my hands to turn tiredly and there's. another question about deals i know gas prom

is negotiating with eon its participation in the south stream project how high is the probability that it will join south remained what made the conditions be. i'm not aware all of or or involved in any of those negotiations we are focusing on the preparations of both of the project the search and we will see who in the end are the shareholders some for what for what percentages so i can't really comment on that question i think that's best addressed to gospel thank you thank you very much worse for being with us and just to remind that my guest on the show today was marcel primary the c.e.o. of south street and that's it for now from all of us here if you want to have your sense spotlight where have someone in mind here think i spent the next time just

drop me a line at tao we're now at. a party here and let's keep the show interaction we'll be back with more for a special comment on what's going on in and outside russia and so then stay on r.t. and take care.