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a beacon for tentative peace in libya as tunis he offers an island they need for talks between kind of gadhafi and opposition rebels it's also called for russia and the african union to arms has mediators arbet from his envoys touring the region there nafis to broker peace. up next getting russian gas what's needed within the diversions spotlight speaks to that south stream pipeline but also about what this means for keeping europe pound up. i'll. remind you the latest in science and technology from around the world. we've got the future covered.

hello again and welcome to spotlight the interview sheryl on r.t. 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 independent gas shipping route to you but as the project is gaining momentum there is 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 peter's world economic forum . after the gas row between russia and ukraine left europe freezing moscow decided to develop an independent through to secure its gas supplies south stream a belated 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

thought household on the continent and stupid russian gas. means our streaming back to gazprom is working hard to prove that even a joke like. hello is a crime or welcome to the show thank you very much for being with us. well first go 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. there was very good price and says not only of the many partners in the south stream project but also of e.u. officials and not 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 the search. goes real agents and used the words this is clearly a priority also for the e.u. and we will find 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. 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 alone with russia. that this project these stores clear priority status so we're working on the we're discussing it 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 the same preferences as no good for example or are you ready for a compromise. well i think we see this quite separately from whatever

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 function we want to have a clear stable and supportive 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 point. but i think in general the transit networks need modernization and a good example of that is also the north korean project which is now for its first stage nearing completion it's a great success which will also ensure stable long term supply so one modern system and on the modern managed. all i can say about ukraine should. the ration 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're taking now that it would not be wise to and tire leaders rely on the ukraine for transit for the kind of volumes that i think always were 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 border in 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 quote of the south stream promises to two to pump up to sixty three billion cubic meters of gas they year already you know the source is going to get the gas to fill the pipe. but i think. the the market to me until the site the exact volumes work is being now done is being done now to conclude those contracts because passive the of south stream in the end that means in twenty nineteen will be sixty three b c m

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 no because the contracts have to be signed. and we will see part of the new gas and we will step back to be rerouted gas gas wells that are now today. still going through ukraine it will be a mix while you're talking about this really rooted gas well the gas that's now going through through ukraine is there. a lot of it going to be diverted into science is 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 so 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 problem to revise south rings price tag for 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 pipe lights or something we expect that to be ready

sometime in the third quarter. nobuko is cheaper than south stream does it make new book a more competitive than 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 a piece likely to be only all girl of magnitude of ten billion euros for the offshore park and of like c. and approximately another five forty on shore parts to the transit countries on the way to it's only an austrian. 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 read you also do not have a good comparison with any other projects on our book away this clear that

a number of the participants and they have said so publicly expect much higher of course 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 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 five like projects. such as noble coal but are more have the deed to do you feel the competition from the book anyway. but i don't i don't see the center and self 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 of right into the market through that pipeline system in this case the gas is available we're really talking about new infrastructure 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 quite competing also time wise what i've read at least what we're not following a day day to. the novel partners expect to be quite a bit later. the planning we have for selves. says marcel crammer the c.e.o. of south street who is joining us from st petersburg from the economic forum spotlight we'll be back shortly right after a break so don't go stay where you are. 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 an approaching us on the front. of the early twenty first century military bases a network of military bases all around the forms of the empire that the united states is trying to get its 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 and. 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 know we just all american bases in cross our bases of i or

the noises i would north of doesn't bother us at all because they're all bases where for other people it's almost like a cancer here for these few. since the end of world war two the spaces are big. we're here to provide a safe and secure environment for everybody. the questions the i think calls to get everything you needed. seventy six hours of intense fighting. six thousand jammers a beach front panel field several kilometers long. and now there is only one person who cares. you see we are surrounded by graham ridge everywhere but also there are . on this beach which of course is the most appropriate city signification a symbol of everything that's wrong with our goddamn government allowing our only

garbage which to accumulate where so many guys died. a new battle is going on. will the history be protected. return to terra with julian cooper story on our t.v. . welcome back to spotlight i'm just a reminder that my guests on the show today. primaries they see out of the south stream who is joining us from st peter's been from the economic forum. grammar we started talking about about south stream bad in a 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 asked 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. and g. and chilled gas in quite a different way. the shale gas first of all we know the story about us very large and rather unexpected volumes of shale gas have gone through 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 quite clear how complicated some of the production will be in europe it could be

quite different from the u.s. and there are a number of environmental issues around shale gas. which may also delaying some of its development particularly in europe which is more densely populated in most places. and we care for have to wait and see about the general view is that we would not it's. back to significant volumes of shale gas to complete 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 this ousting project at all and alan g. well let's wait and see it is true that we have more elenchi receiving terminals now in europe than we had let's say five or ten years ago that's good news and 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-esteem 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 we're 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 through part phones . well i'm not here to talk for all the companies that are in this business so i'm really focusing on the cells the pipeline project the 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 the to my station within your current system that 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 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 table 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 then arguments against states in the ukraine you who's interested in derailing this project. is again except ukraine force. but i will say that you know it is obviously a project in european interest europe needs an important market as europe wants to do that in a secure and stable manner and so safe and secure a new transit routes are obviously wrong 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 influence it brings good natural gas supply secure supplies 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 turkey is giving you a headache lately kenyan lightness how long. 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 of 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 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 roots of the south south stream parklife may this be true. well we are looking at the overall route at a moment and the terminating. the falling 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 are fulfilled be taken into account. see where you 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 well i mean are they really huge 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 the project or in specific locations have to be taken very very seriously. if you look at all short by projects where natural gas such as north stream but also many many of those in the north sea for example the norwegian sector the british actor and cetera and elsewhere in the world you can really say transporting natural gas in a by plane. is not in itself at all hazardous

exorcisms 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 . through. an area such as the black sea in itself is a perfectly safe. 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 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 confident 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 from is negotiating with iran. in the south stream project how high is the probability that iran will join. south remained what made the conditions the. 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 start and we will see who in the end are the shareholders for what for what percentage of us so i can't really comment on what course i think that's best addressed to gospel thank you thank you very much more so for being with us and just to remind them that my guest

on the show today was marcel primary the c.e.o. of south stream 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 calvin out at any dot car here and let's keep the show interaction and we'll be back with more for a special comment on what's going on in and outside russia and so then stay on our sea and take care.