tv [untitled] June 18, 2011 11:31am-12:01pm EDT
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russia and ukraine left half of europe freezing moscow decided to develop an independent fruit to secure its gas supplies south stream a delayed 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 consumed russian gas. main south stream investigators problem is working hard to prove that even joe the plumber. 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 stream or do they still have questions about the project. well i think it was a very successful event so. there was
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a very good price and smote only of the many partners in the south stream project but also of e.u. all facials and all service from various institutions. we consider this session a success also because the european commission are confirmed the importance of energy relations and of the south to project the such. two dollars real agents and use their 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 detailed discussions. 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
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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 to mystic about the. russians and as you minister mr expects to sign an agreement with the e.u.
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this all with some what kind of agreement could be there is russia want to have the same preferences as nabucco for example or you're ready for a compromise. while i think we see this quite separately from whatever partners may have arranged among themselves or way to e.u. or with the e.u. 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 project 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
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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 a good example of that is also the north korean 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
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tiredly rely on the ukraine for 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 is going to be additional security of supply or for europe. or the south stream promises to to to pump up to sixty three billion cubic meters of gas three years do you already know the source is going to get the gas to fill the pipe.
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the market did the end to the side 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. 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 survive to be 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
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a south stream the significant part yet where or how much. well you know significant it's always open to one to protection 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 strange price tag up forward this year as the prices for commodities like seal 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 to the project is on schedule. we are working hard on many
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different aspects including the final. conclusion of the preferred routing of the entire pipeline so stunned we expect that to be ready sometime in the start water. is cheaper than sound 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 says they taste likely to be only order of magnitude of ten billion euros for the offshore part in the black sea and approximately another five parked through the times the country is on the way to it's only and austria. that's a very preliminary estimate the final budget will be available when we take the
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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 all nabucco it is clear that a number of the participants and they have sat 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 like projects. such as noble coal but are more have the deed to do you feel the competition from the book anyway. well i don't i don't see the said in terms of competing
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projects they are very different in nature in a book called very heavily of course depends on the ability to get adequate gas supply of large volumes of gas supply into the markets ruled out by flying systems in this all steam case the gas is available we're really talking about a new one cost structure for security of supply and nolt about to meet the flying large additional suppliers of large additional volumes of natural gas so in that sense really i'm not quite competing also time wise what i've read at least but we're not following a day to day. the novel called partners expect to be quite a bit later than the planning we have for solstice. says marcel crammer the c.e.o. of south street who is joining us from st petersburg times economics park spotlight
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just. to a substantial degree and one form or another socialism has spread the shadow of human regimentation over most of the nations of the earth and the shadow is encroaching upon a whole different. in the early twenty first century military bases a network of military bases all around the former misleading empire that the united states is trying to do it's astonishing most americans have no idea there are more than a quarter of a million or more than two hundred fifty thousand us troops stationed on these bases all around us. we don't have foreign bases in america we don't have any british base we don't have any korean base we don't have any french bases or you
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know we just all american bases in our bases afai there are the noises i would often doesn't bother us at all because they're all bases but for other people it's almost like a cancer here for these people. since the end of world war two the spaces i've been . working here to provide a safe and secure environment for everybody. the questions they have thing else you get everything you needed.
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welcome back to the spotlight i'm just a reminder that my guest on the show today. crammer he is the c.e.o. of the south stream who is joining us from st peter's been 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 which you pipe which you pump through the pipes also as also as competition like the new
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sources of gas for example the shale gas and the liquefied natural gas they're putting downward pressure on natural gas prices is this really the trend this is a true. well you know i think we have to look at the l.n.g. and chilled gas in quite a different way. the shale gas first of all we know the story about the us for a large and rather 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 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 your. it could be quite different
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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 tar 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
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that will be find on pricing so we'll have to wait and see i think a large modern pipeline system such as south stream 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 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 because quarter quarter they are still pretty conservative and 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 this austan pipeline project as such but let me say this if you have large. natural resources
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conventional resources of natural gas that can be produced if you also have possibilities for the to my station within your current system much of that is likely to be economically more attractive than centering 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 a lengthy 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 only 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
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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. 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. and firemen's for renewable sensible woman soulforce so we are feeling
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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 kenyan 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 with such are not directly involved in that so i can't really comment on it clearly also here the importance of the
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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 in some analysis in the papers that the turkish position the tough position may even change the route of the south stream pipeline may this be true. well we are looking at the overall route at the moment and determining. the following all. 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 fulfill be taken into account. they see where you laying the per pipeline is called the black sea and some some people. we'll say that that the south stream is
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a project that may really turn the sea into black sea literally it's not black yet thanks god that well i mean all they really she environmental risks for the black sea i mean the little lady 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 offshore pipeline projects for natural gas such as north stream 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 transporting natural gas in a biplane on the seabed is not in itself at all survivors
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exercise 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 when will they be signed with. the false and also the winter shall the french and the german companies about the condition of their participation 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 then. none of them wants to take it any
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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 problem is negotiating with iran its participation in the south stream project how high is the probability that iran will join south remained what made the conditions of the . i'm not aware all 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 when you can target 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 for self for being with us and just a reminder that my guest on the show today was marcel tram or the c.e.o.
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of south street and that's it for now from all of us here if you want to have your sound spotlight or have someone in mind you think i spend the next time just drop me a line at our now at. our hero and let's keep the show interaction we'll be back with more for us then comment on what's going on in and outside russia and phil then stay on r.t. and take care.
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stumped on t.v. dot com. tonight the e.u. agonizes over curbing its catastrophic debt ballooning bailout budget as other countries ones eager to join the plot have second thoughts. but how to stop global crises happening again major business and political leaders and discuss just that at the international economic forum which is just wrapped up in some papers but. syria faces a third round of e.u. sanctions amid more deadly anti government crackdown which saw more than a dozen dead and thousand range nationwide. hello you're watching r.t. it's now eight pm here in moscow my name's kevin zero in with you tonight in our
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top story a real wall that so greece's latest finance minister sums up the job ahead of him he's been tasked with securing another multi billion euro bailout the criteria for which means slapping an outright hostile greek public with more start of the cuts and some countries like turkey which once harbored dreams of e.u. membership are getting to rethink their plans these days too. if you talked about turkey in the e.u. ten years ago turkey's hopes of joining would have been inseparable from joining the euro not anymore turkey's attitude in short can be summed up very simply very glad you're not part of the euro right now took on the street seem to have a wide range of opinions on the euro but their countries doorstep europe's economy is worse now turkey's is improving turkey is improving in all fields but europe is going backwards so we don't need them. to kish people are using the euro as an investment to earn money here is
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