to provide a safe and secure environment for everybody. the questions you have because you get everything you needed. for the full story we've got it for. the biggest issues get a human voice face to face with the news makers. hello this is r.t. international from moscow my name's kevin now in with our top stories for you tonight the e.u. is over curbing its catastrophic debt and ballooning bailout budget as other countries once they get to join the blog have second floors. but how to stop a global crisis happening again major business and political leaders have discussed just that at the international economic forum that wrapped up in st petersburg. and

syria faces a third round of e.u. sanctions and with more deadly anti government crackdowns but seeing more than a dozen dead and thousands range nationwide. next getting russian gas where it's needed with no diversions spotlight speaks to the south stream pipeline boss about what that means for keeping you up up powered. hello again and welcome to spotlight the interview cheryl and hearty and i'll do another one today my guest is marcel crammer russia isn't the first thing hard into the south stream pipeline a direct and expanding gas shipping route to you but as the project is gaining momentum there's criticism in some quarters that south stream is uncomfortable and

has no future what to do the project leaders have to say to that here's the c.e.o. of the south stream marcel crammer joining us from st peter's world economic forum . after the gas well between russia and ukraine left of your breezy decided to develop an independent group to secure its gas supplies south stream believe along the bottom of the black sea and back on into europe the critics say these pipelines will make western europe even more dependent on moscow today every fourth household on the continent and russian gas. main saskin a blast against rock he's working hard to improve the image of the pipeline. welcome to the show thank you very much for being with us. both first 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. there was a very good price on slot only of the many partners in the southeast. in projects but also. e.u. officials and all 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 as such. to those relations and use the words this is clearly a priority also for the e.u. and we will find put a 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 he 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 parties. 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 and we're optimistic about. russia's energy minister mr expects to sign an agreement with the e.u. this autumn what kind of agreement could be those russia want to have this. in preferences as in a book or for example or you ready for a compromise. take we see this quite separately from whatever book or partners may have arranged among themselves or with the 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 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 in our view cranes gas pipeline system would be a cheaper solution than constructing a new underwater clap line is it true or does moscow believe that ukraine has lost its credibility as a reliable client. but i think in general the transit networks need modernization a good example of that is also the north sea project which is now for its first states nearing completion it's a great success which will also ensure stable long term supply to a modern system and on the modern management all i can say about the ukraine

circulation 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. transit for the kind of volumes that have been going through there so far so. what that then 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 up to date and well managed transit system in the form of our stream. which implies that there is going to be additional security of supply or for your quote of the south stream promises to two 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 quite. well i think. the the market in the end told 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. and you are 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. i'm 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 partly new gas and we will see a partly rerouted gas trucks that are now today still going through ukraine it will

be a mix where were you talking about this rerouting gas well the gas that's now going through from through ukraine is. a lot of it going to be diverted into sites a south stream a significant part yet where 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 two 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 upward this year as the prices for commodities like steel and cement also klein 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 then south really does it mean 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 says it is likely to be on the order of magnitude of ten billion euros for the offshore part and of like c.

and approximately another five forty on 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. i 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 we easy to talk about who is cheaper or 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 pipeline projects . such as noble coal but are more had to do with the do you feel the competition from the book anyway. but i don't i don't see decent terms of competing projects they are very different they nature in a book will very heavily of course depends on the ability to get adequate gas supply of large volumes of gas of right into the market through that pipeline system in this ousting case the cast is available we're really talking about a new one core structure for security of supply and not a belt they need to find large additional suppliers large additional volumes of natural gas so in that sense really not by competing also time wise what i've read at least but we're not following

a day to day is that the noble call partners expect to be quite a bit later than the planning we have for sell state. says marcel crammer the c.e.o. of south trees who is joining us from st petersburg from the economic forum spotlight we'll be back shortly right after a break south then we go stay where you are. it's

. a stream cascading from. the speed of more than two hundred kilometers. steps to. seventy six hours of intense fighting. six thousand.

front fields several kilometers. and now there is only one person who cares. to see we are surrounded by graham ridge everywhere but also there are. on this beach which of course is very most appropriate signification a symbol of everything that's wrong with our goddamn government allowing not only. to accumulate where so many guys died. history be protected. return to charles. cooper story on our keith. wealthy british science it's not just.

market i'm going to find out what's really happening to the global economy for a no holds barred look at the global financial headlines if you mean to cause a report. welcome back to the spotlight i'm just a reminder that my guest on the show today. primaries the c.e.o. of the south now is joining us from st petersburg from the economic forum mr krammer we started talking about about south korean 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 has competition like the new 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 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 u.s. for a large and rather unexpected volumes of shale gas have come to the market where. 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 trying 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 us and our number of environmentalists who surround 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 market in europe until at least twenty twenty five or beyond. there maybe 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 terminals 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 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 with cells. but are you russian partners are russians ready to to meet this new possibilities the new challenge challenges of which we're talking because who are or are they are still pretty conservative then and still prefer to to make their money the old way i mean by pumping gas into europe to crack phones. i mean. here to talk for all the companies that are in this business i'm really focusing on this 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 optimization within your current system that

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 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 only immediate future because you have so much conventional gas that can be competitively produced a market still of it. mr krammer you have claimed many times that the south stream is a project of european interest at what you say but this argument again sits in the opinion who's interested in derailing this project to is again except ukraine

force. well i will say that you know 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. projects of major european influence 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 us some headache lately can you lightness how long. your assessment will it take to reach an agreement with the turks on laying the and there were 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 as 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've read about it in some and some analysis in the paper is that the position the tough position may even change the route. south stream pipeline may this be true. well we are looking at the overall route at the moment and determining. the fall you know. over the next few months and when that decision is being made sure all the aspects such as the position. transit country and others know full well be taken into account. they see where you're laying the line is called the black sea and some some people say that that the south stream is a project there that may really turn the sea into a black sea literally it's not black yet thank god i mean are they really

huge environmental risks for the black sea i mean the little lady the underwater flight is this true. well i have to say you know all the questions about the environment impact in general the project or in specific locations have to be taken very very seriously. if you look at offshore pipeline projects when natural gas such as north st 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 bike lane on the seabed is not in itself at all hazardous exorcisms now that being said for the specific roads 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 force 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 a. 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 confident that 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 there's. another question about deals i know gas prom

is negotiating with iran its participation in the south stream project how high is the probability that will join south three men what made the conditions. i'm not aware of or or involved in any of those negotiations we are focusing on the preparations of quote of the project the search and we will see when you are to share over some for what for what percentage is so i can't really comment on that bus i think that's best dress the gospel thank you thank you very much for self for being with us and just to remind that that my guest on the show today was marcel travers the c.e.o. of south street and that's it for now from all of us share if you want to ask your sound spotlight or have someone in mind you think i spend the next time just drop

me a line at our going out at. our hero and let's keep the show interaction we'll be back with more first and comment on what's going on in and outside russia and so then stay on r.t. and take care.

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