three. three. three stooges. revolt to video for your media drug free media r t v dot com. welcome back here with our team here is a look at the top stories the e.u. agonizes over curbing its catastrophic debt and ballooning bailout budget as other countries once eager to join a bloc have second thoughts. but how to stop a global crisis happening again as major business and political leaders have to scuzz just that how do national get out of form which has wrapped up in st petersburg. syria faces the third round of sanctions amid more deadly

anti-government crackdowns which saw more than a dozen dead and thousands rage nationwide. so how lives here are teaneck star interview shows spotlight talks of the project leader the south stream gas pipeline marcel kramer about what the new routes could mean for supplies to europe. hello again and welcome to spotlight the entire we share on r.t. and i'll do another one today my guest is marcel grammer pressure 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 not to do the project leaders have to say today here's the c.e.o.

of the south stream marcel crammer joining us from st peter's world economic forum . after the gas role between russia and ukraine left after your precinct decided to develop an independent proved to secure its gas supplies south stream i believe along the bottom of the black sea and then on into europe critics say this pipeline will make western europe even more dependent on moscow every fourth household on the continent and russian gas. means our streaming back to gazprom is working hard to prove that even though the pipeline. is a crime or 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 did this presentation somehow change the attitudes in the e.u.

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 smote only off the many partners tender sauce. in projects but also of e.u. officials and of service from various institutions. we consider this session success also because the european commissioner confirmed the importance of energy relations and of the south project starts. to goes 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 the point where we have

a good basis for further and perhaps more detail discussed. do you believe that you will succeed in getting a priority status for south stream in the e.u. exempting it from the european union rules requiring it to share its infrastructure with third parties. well there is an ongoing discussion between the european commission and the russian government about an overall agreement press 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 alone with russia that this project these are clear priority status so we're working on that or

discussing it and we're optimistic about the. russia's energy minister mr expects to sign an agreement with the e.u. this autumn what kind of agreement could it be there is russia want to have this. same preferences as nobuko for example or are you ready for a compromise. well i think we see this quite separately from whatever vocal partners may have a arranged among themselves or with the e.u. or with the e.u. member conference 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 front we want to have a clear stable and support 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 adeline is it true or does moscow believe that ukraine has lost its credibility as a reliable point. but i think in general the transit networks need modernization a good example of that is also the north street project which is now for its first stage nearing completion it's a great success which will also ensure stable long term supply so a modern system and in the modern managed. all i can say about 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. with your transit for the kind of volumes that have been going through there so far so. what that 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 day and well managed transit system in the former south stream. which implies that there's going to be additional security of supplies for for your quote of the south stream promises to to to pump up to sixty three billion cubic meters of gas the year do you

already know the source is going to get the gas to fill the pipe. the the market did me until the site the exact volumes work is being now done is being done now to conclude those contracts the capacity of south stream india and that means in twenty nineteen will be sixty three b.c. i'm 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. and capacity about forty four years later in yen to market will be the judge though because the contracts have to be signed. and we will see part of the new gas and we will serve our three rerouted gas gas flows that are now today still going through

the ukraine it will be a mix where were you talking about this really route and gas well the gas that's now going through fun through ukraine is that. a lot of it going to be diverted into sites a south stream a significant price 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 due to surge 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 upward 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 pipeline system we expect that to be ready sometime in the third quarter. is cheaper than sense does it make new book a more competitive in south stream. but first of all i haven't heard any firm and final numbers for i don't know or south stream or south stream or using a preliminary estimate which as it is likely to be only daughter of magnitude of ten billion euros for the offshore park and of like c. and approximately another five forty on shore part to the transit countries on the

way to italy and austria. that's a very preliminary estimate the final budget will be available. and we take the final investment decision. and i think we'll have to wait and see therefore we review also. i do not have a good comparison with any other projects. this 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 doubt it is really until that point it's really not so we easy to talk about who is cheaper and more expensive the key is. if you have sufficient gas will sort of pipeline that of course significantly improves the

economics and that seems to be an issue for some of the other five like projects. such as noble coal but are more have to do you feel the competition from the book anyway. but i don't i don't see the sentence of competing projects they are very different in nature in a book called very heavily of course depends on the ability to get adequate gas supply large volumes of gas supply into the market through the pipeline system in this ousting case the gas is available we're really talking about new infrastructure for security of supply and not about the need to find large additional suppliers of 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 to day is that the number of partners expect to be quite

a bit later than the planning we have for sales. says marcel crammer the c.e.o. of south treat who is joining us from st petersburg from the economic forecast spotlight will be back shortly right after a break so stay where you are. it's

. to a substantial degree and one form or another socialism has spread the shadow of human regimentation over most of the nations of europe and the shadow is encroaching on. the early twenty first century military bases a network of military bases all around the forms. that the united states is trying something that's astonishing most americans have no idea there are more than a quarter of a million or more than two hundred fifty thousand u.s.

troops stationed on these bases all around the. bases around america we don't have any british base we don't have any korean base we don't have any french bases or you know we just all american bases in bases of. noises. because they're all bases but for other people it's almost like you can see your spiel since. these spaces have been. a. mummy we're here to provide a safe and secure environment for everybody. because it's the appeals to get everything you need in. on.

the and limited. just so. it's just. it's. just sucks it's. safe. it's. easy. welcome back to the spotlight i'm out of and just a reminder that my guest on the show today is going to sell primaries the c.e.o. of the south stream who is joining us from st petersburg from the economic forum mr

krammer we started talking about about south stream bad in the book about competitiveness of these two projects but as far as i understand natural gas pipe which you pump through the pipes also asked also has 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 alan g. and chill gas in quite a different way. the shale gas first of all we know the story about the u.s. for a large or rather unexpected 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 elsewhere 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 yet quite clear how complicated some of the production will be in europe it could be quite different from the u.s. and our number of environmental issues around shale gas. which may also delaying some of its development particularly in europe which is more densely populated than most places. and we care for have to wait and see about the general view is that we would not it's. backed significant volumes of shale gas to complete the market 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 we have more elenchi receiving terminals now in

europe than we had let's say five or ten years ago that's good news that 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 behind on pricing so we'll have to wait and see i think a large modern pipeline system such as self-esteem is definitely proven to be very competitive that's always been the case in the history of the cast industry and it will be the case for itself. but i you know russian partners are russians ready to to meet this new possibilities the new challenge challenges of which we're talking or or you think are still pretty conservative and and still prefer to to make their money the old way i mean by pumping gas into europe through private funds.

well i'm not here to talk for all the companies that are in this business so i'm really focusing on this austan 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 possibilities for for the to my station within your current system to 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 will follow the developments very closely they already do that and are seriously involved in l. and g. trade and in energy production they will also follow very closely what happens with shale gas but it is definitely not seen as something that they will large scale jump on any 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 watch you say but there arguments against sits in the u.k. new who's interested in doing this project. is against except ukraine first. but 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 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 so forth 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 your who see this somewhat differently that's fine i'm sure we can convince. i guess. that is giving you a headache lately kenyan lightness how long in according to your assessment will it take to reach an agreement with the troops 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 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. but is there still a risk and i have read about it in some and some analyses in the papers that the turkish position the tough position may even change the root of the south south stream pipeline may this be true. well we are looking at the overall route at the moment and the terminating. the fall you know. over the next few months and when that decision is being made sure all the aspects such as the

position of transit country and others and folks will be taken into account. they see where you are laying the per 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 are they really huge environmental risks for the black sea i mean the little lane they 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 the whole short by line project for natural gas such as north stream but also many many of those in the north sea for example the norwegian

sector the british sector etc and elsewhere in the world you can really say transporting natural gas in a pipeline. is not in itself at all as are verse exercises now that being said for the specific route you have to of course of any negative impact on the seabed and on the environment where you can but transporting gas. 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. resole for. some

outstanding issues this is a large and complex projects will naturally as has been the case in other projects take some time but i'm told for then 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 it's entirely and. not a question about deals i know gas prom is negotiating with eon it's the south stream project how high is the probability that it will join. south remained what made the conditions of the. i'm not aware of or or involved in any of those negotiations so we are focusing on the preparations of quote of the project the start and we will see who in the end are the shareholders for what for what percentage so i can't really comment on that question i think

that's best addressed the gospel. thank you thank you very much for being with us and just to remind you 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 bottom right or have someone in mind here think i'd spend the next time just drop me a line in calgary now at the t.v. dot are you and let's keep the show interaction and we'll be back with more for a special comments on what's going on in and outside russia and so then stay on r.t. and take care. from

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