shell 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 a very good price and smote only of the many partners in the south stream project but also of e.u. officials and of 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 as such. to those 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 for further and perhaps more detailed discussion. do you believe that you will succeed in getting a priority status for south stream in the e.u. there 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 the or discussing it domestic about. russia's energy minister mr coe expects to sign an agreement with the e.u. this autumn what kind of agreement could be does russia want to have the same preferences as nabucco for example or are you ready for a compromise. while i think we see this quite separately from whatever partners may have a arranged among themselves or way to e.u. . 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 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 stream project which is now for its first states. 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 to 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 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 three years do you already know the source is going to get the gas to fill the pipe. well i think. the market in the end told the side the exact volumes work is being now done is being done now to conclude those contracts the capacity of south stream in the end that means in twenty nineteen will be sixty three p.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 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 to ukraine it will be a mix while you're talking about this really rooted gas well the gas that's now going through funk 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 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 strange 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 and respects 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 quarter. nabucco 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. gold or south stream or south stream or using

a preliminary estimate which says it tastes likely to be only order of magnitude of ten billion euros for the offshore part in the black sea and approximately another five parked to the tons of 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 believe you 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 set sold publicly expect much higher cost 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 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 markets ruled out by flying systems 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 but we're not following a day to day. the navajo partners expect to be quite a bit later than the planning we have for solstice. says marcel crammer the c.e.o. of south trade please joining us from st petersburg from the economic forum spotlight we'll be back shortly right after a break so 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 i'm

approaching a whole different. of the early twenty first century military bases the network of military bases all around the former is the evil empire that the united states is trying to build 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. we don't have power 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 our bases of why you are the noises our north of those bombs to us at all because they're all bases but for other people it's almost like a cancer here for speed. since the into world war two the spaces i've been.

working here to provide a safe and secure environment for everybody. the questions the appeals you get everything you need. seventy six hours of intense fighting. six thousand dinners. of beach front battlefields several kilometers long. and now there is only one person who cares. you see we are surrounded by garbage everywhere but also there are. on this beach which of course is the most appropriate signification and symbol of everything that's wrong with our goddamn government allowing not only garbage but to a chair. where so many guys died. a new battle is going on. history be protected. return to. julian cooper

story on our t.v. . welcome back to spotlight i'm just a reminder that my guest on the show today is of our cell crammer 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 has 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 this is

a true. well you know i think we have to look at the alan g. and chill gas in quite a different way. the shale gas first of all we know the story about to us for a large and 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 there are a number of. the 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 maybe 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 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 that will be find 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 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 to 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 conventional lead. sources of natural gas that can be produced if you also have some possibilities for 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 then a g. 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 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. 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 sold for. 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 according to your assessment will it take to reach an agreement with the 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 in time. but is there still

a risk and i've read about it in some in some analyses in the papers that the turkish 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 terminating. 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 folk will be taken into account. they 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. it may really turn the sea into a 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 the project or in specific locations have to be taken very very seriously. if you look at a short pipeline project 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. is not in itself at all survivors 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 one movie 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 than none of them wants to take it any longer the next. so we're looking forward to the conclusion but it's not in my hands return 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 projects 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 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. of south street and that's it for now from all of us here if you want to have your sound spot light or have someone in mind here think i spend the next time just drop me a line a towel going up at. our hero and let's keep the show interaction we'll be back

with more for us than to comment on what's going on in and outside russia and so then stay on r.t. and take care.

as the u. agonizes other catastrophic debts and ballooning bailout budget people into the ones the dreams of joining to be beginning to think were borderline. meanwhile the st petersburg international economic forum has been discussing how to avoid another global economic meltdown and encouraging major firms to take a fresh look at the new horizons for investors in russia. i want to bring you to the end of the hour to antarctica the most southern russian orthodox church built in a place you'd least expect. new song russia under around the world this is the with me thanks for joining its economic turmoil in the eurozone is turning up tacky from joining the european

union opinion poll suggests that the country wants so king to join is having second thoughts with its own economy booming while the us is in chaos and explains why tech has gone cold on the idea. 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 if 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 the country's 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. turkish people are using the year as an investment to earn money here is a more reliable than turkish money because people don't want to save their money in the euro. few invest in euros you get more than leave the euro is also stronger

than dollars having said that i don't want to risk investing. but academics analyzing public opinion have found a common logic in decisions about the euro people polled don't care about wider economics but about their own personal finances my pocketbook or economy is actually beyond me you know an important factor that will make euro skeptic or euro file the public opinion analysts a keen to point out that further economic integration into europe doesn't just mean money and that people shouldn't only think about their pocketbook economics they have to take into account the freedom of movement of labor the freedom of service you know women of service these are all integrated any other so it's not only you know exchange of money or turks turkish new living turkish mirena the thing you're all one thing everyone does agree on is the mess the eurozone is in whereas turkey's economy.