always think and grow that italy is next in the financial firing line up more debt certain piling up i made record borrowing costs. and next an r t spotlight host al gore talks to a spokesman about why moscow now faces criticism following the grand opening of the giant gas pipeline that's next. oh yeah.

finally. europe. has a political. one. the

. europeans feel. thank you for coming to our program hello first of all let me congratulate you on the big event stream pipeline has finally been completed and officially launched. the leaders of russia and germany and the prime ministers of france and the netherlands have given the long ceremony does this mean and then through a period of hard work promotion and litigation for gas problem or does it mark the beginning of a new phase of struggles in this direction in. which of course this is

a very significant event and an important landmark in gas problems operations in europe because today we have greatly improved the reliability of supplies of russian gas to european consumers. we now have a third gas transportation channel that will not only help us to avoid crisis situations linked to gas transit through third countries. but it will also substantially improve our technological and technical capacity is and will make us more flexible in reacting to the needs russian gas consumers in europe but the meeting. mr first far as i know. pipeline along the seabed is much more expensive than building a land pipeline the transit gigi's which russia wouldn't pay are unlikely to compensate for the surprise difference in the near future does it mean the gas pumps decision to pump gas son to the baltic sea is politically motivated.

no it's not so. the tariffs for gas transportation under the sea and via land pipeline do not differ very much construction costs are different yes but there are so many other expenses that should be taken into account for example permission to use land for building a ground based pipeline. this is a substantial expanse seitan with a pipeline under the sea we won't need any transit countries and it means that we are going to pay these money just selves. gazprom owns fifty percent of north stream shares and it means that we're paying half of transportation costs into our own pockets thus compensating for the expenses we incurred at the construction stage. so this is

a very profitable project that is why the world's leading financial institutions and organisations which financed almost seventy percent of the project showed such an interest in it have you calculated how long will it take for the project to pace way. it's not going to happen soon but anyway yes pipelines never pay off quickly that they're designed to operate for thirty forty or fifty years and the operation model of ventures like north stream is based upon this concept when i mentioned political motives i didn't mean that you were planning to define russia's relations with the european union i mean something different gazprom has recently taken a very tough stance in negotiations with transit countries in particular some even describe its position as uncompromising i would rather stick to the word soft and i think you're going to agree with me after opening an alternative route for transporting russian gas to europe will get negotiations get tougher. no i think

it's going to be quite the opposite the transit countries will no longer be able to take such a tough stance against gazprom which as you and i can remember they've tried to do many times is going to be impossible for them to manipulate their unique position of being transit countries any longer. we consider it to be a normal and proper development of the situation. i don't think that anybody could expect transit countries to preserve an eighty percent monopoly on transit of russians. as to european countries i think that the north stream pipeline is an objective reality which everybody has accepted everybody understands that opposing it is unnecessary and simply impossible. just a couple of weeks ago the number one political news which is on everybody's mouth

certainly the rest of you. people in the streets say that's with being thrown into jail ukraine is going to revise its guys agreement with russia as a guest from representative do you think about it will discuss agreements really be revised remain in force until it officially expires. i think we should separate these things as case it has nothing to do with ukraine's gas contracts with russia . believe these two things are instilling they consider them to be the links of one chain well that's what people in the streets say i believe that if we speak about our relations with enough to gossip craney the question has never been posed this way as for the guests agreements they are in force they were signed and the ukrainian side is implementing them. we have a common understanding that instead of revising the existing contracts we should

work together towards broader agreements that will include the terms of delivery of russian gas we're holding these negotiations but i don't want to go into details now on the whole the talks have been intensive and constructive but there are many serious and complicated issues that ought to be solved so today's very hard to predict whether these negotiations are going to end you don't get your oit's you're prepared to improve your gas relations with the crane but there's no need to break revise the existing contracts. it's absolutely true the phase one of the north korean gas pipeline is meant to put an end to. supply disruptions in europe spotlights the reports. build a deal of more extreme dates back to the nine to ninety s. it was not until six years ago that russia begins to shift the project forward two thousand and five so the first in

a series of so-called gas wars between moscow and kiev ukraine used to transit pipeline running through its territory from russia to europe to blackmail the russian government into giving the gas at reduced prices ukraine was also called illegally taking gas from the transit pipeline on more than one occasion unable to reach an agreement with key of russia was poor stupid all gas supplies passing through ukraine in two thousand and nine eighteen european countries will left with either a shut off or reduced gas supplies from russia unwilling to depend on transit countries any longer russia prompted the development of alternative and they just supply routes it came up with nord stream which trans under the baltic sea and has just begun pumping gas to europe and south stream we trance through the black sea and this point to be finished by twenty fifteen both the pipelines reach european

consumers directly this year has seen new disputes between russia and ukraine over gas prices ukraine's ex prime minister yulia tymoshenko was found guilty of abusing the storage of one son in two thousand and nine gas contracts with russia the ukraine currently enjoys a thirty percent discount to the gas price it still insists it's been too much wherever the dispute ends up this year the sperm official say nordstrom being the operational mainstay european consumers have nothing to worry about this time around no russian ukrainian gas conflict killing fact the european continent. we've said the lords of the north stream pipeline will help to ensure the security of supply and demand. is a truth that energy security is not going to be full until south three. because

northern south stream so the links of one change. of course it is true. they are the links of one chain by having launched stream we will be able to meet the needs of our consumers in the north of europe. and it's natural that consumers in southeastern europe will get additional opportunities to receive a russian gas only after a sell stream begins operation. the construction of south stream is carried out according to plan. and well working haunch toward a fixed completion date that is the two thousand and fifteen is a real figure. this is the schedule we have right now will these deadlines be met yes of course says. gastrell the spokes spotlights moving back sure who will continue this interview so we'll take

a break say we will go to. wealthy british style. markets why not. find out what's really happening to the global economy with my next concert for a no holds barred look at the global financial headlines in two kinds a report. more

news today violence is once again flared up. these are the images the world has been seeing from the streets of canada. china corporations are today. if. if. if. i am.

welcome back to. show today. spokesman. and the first sponsor we mentioned ukraine one of the talks of the town in the press and among the people in that country is the price for natural gas. if you. statements by politicians. at the highest price than anyone else no other country pays as much as ukraine the first question is the treaty true and the second. the price way.

early i send that any promise console changes to this thing contracts should be discussed as part of the efforts to expand or intensify our cooperation. if ukraine is willing to do that gazprom is ready to negotiate on the conditions of gas supplies. in terms of absolute figures you could bring it up and argue about it in the media as much as you want. but in reality the natural gas prize for ukraine is command sure ate with the prize paid by its european neighbors. then there is a discount equaling russia's gas export fee which was agreed in the c.t.o. . sold to price appears to be quite appropriate and affordable for

ukraine as we have seen in the past few years. of course all ukrainian parties are looking for yet cheaper price and that's why they come to moscow regularly school i would guess from contract with belarus is due to expire soon but with that country you seem to have gone further in the negotiations agreeing on price cuts and exchange for a stake in beltran's girs the national gas company is that the kind of a bargain that ukraine has refused to accept let's leave the specific conditions of gas supplies to belarus now because. i would like to talk about a new contract on the supplies and transportation of natural gas through. we have seen much faster progress there. and we are confident that as early as november the papers required to close the contracts and intergovernmental agreement

will be ready. i would like to repeat my question ees gasper i'm ready to decrease the price at least if you are specific conditions are met. we are nearing a deal that would satisfy both the russian and the by the russian sides. progress in means than in kiev right right thawing move on to the next topic how will share on the european market change after the launch of north stream is a due to rise. in itself north stream is merely a channel for the transportation of a natural gas as for all market share it depends on the volume of the gas sold as you know gazprom sold an additional volume of twenty two billion cubic meters that will be pumped via this pipeline when it's fully up and running we do expect

to rise from a quarter to some thirty percent twenty thirty but the share is not the most important thing. you can control the entire market by selling your gas for nothing but the question is do you really need that. so we're keeping an eye on our market share but boosting it is not our goal it's much more important to maintain reliable supplies to customers along with ensuring our corporate commercial interests. you said south stream will be completed by two thousand and fifteen and heard some reports that the provisions of the third energy package. could disrupt your plans. can you confirm that. well yes there are certain difficulties relating to nordstrom to we have managed

to get a kind of an exemption for the pipelines constructed on the territory of the european union by our partners specifically for supplies of natural gas via north stream but to tell you the truth it's not a full exemption the same as with the norwegians not quite again it's not a full exemption so some issues still remain unsolved we have been in talks with the european commission we believe gas probably will be able to reach a mutually beneficial deal both on south stream and north stream we hope to sort it out please comment on the following report according to the new. gas from will have to give up its share in the year two is due us within two years time will gas prom seek to disputed comply with a new law. the final decision has not yet been made but without doubt gas problem reserves the right to file an application to the arbitration institute of the

stockholm chamber of commerce this procedure is set forth by the agreement on investment encourage mint which was signed when purchasing a stake in that enterprise. the european union antitrust authorities were reported to have raided gasper marcus is in europe accusing them of violating the e.u. and to monopoly legislation what was your response to expect any court cases or will some clarifications be sufficient. well first of all no accusations have been brought against us or was it the reason. well the paper checks you mentioned were done on suspicions that there could have been some violations of the european anti monopoly laws anyway it will take the e.u. authorities at least several months to study the documents. in similar cases with other companies indicate that it could last as long as several years. the

examination will result in an official statement which will either include requirements for a change in corporate practices by a guest brum or it's of cedar is. on contract changes or introduce sanctions certainly at this stage we fully cooperate with the authorities by providing all the documents we are now waiting for the statement after that gazprom will decide whether to comply with it or challenge it in court. for it. the other day a russian engine minister suggests musk o. said that's rushing to nz to speed up the east for expansion. meaning energy exports to china the media will see rick. plans to develop its truths the europeans are afraid of that shift because they realize that china is

a behemoth of a market for your natural gas in russia they say it will take years before china becomes as reliable and big as europe has traditionally been what's your assessment does europe need to feel that china will replace it as the primary market of russian gas in the near future. talking of time like to quote the assessment of the chinese government saying that demand for natural gas in china will total some three hundred billion cubic meters in twenty twenty. compared to. its half of the european market. by twenty thirty the chinese market could match that of europe but this is an unofficial assessment does europe need to fear anything maybe they just need to run the business in compliance with existing contracts and expect the same from. his obligations.

indeed gazprom is now implementing a large scale east toward expansion program that will allow us to gain a foothold in the region not only in terms of supplies but also in terms of gas production and processing. the composition of gas extracted there is reacher which will require construction of a number of facilities gas processing plants and gas chemical facilities. so there's a great deal of work outstanding. talking of china we continue. as you know we've been holding the talks for a long time and have not reached an agreement so far but a chinese proverb has it that you shouldn't count miles on your way so if we're going to set any strict deadlines for signing the contracts and the schedule will not be matched by our chinese partners we will end up in an awkward situation at the negotiating table. the talks are underway the size realize they need each

other and sooner or later we will agree on conditions that will suit both parties for the chinese have been tough for the gas from suit forty billion years dollars in advance payment but they refused can you confirm that is it true that this was the reason why you didn't have the funds now to begin the construction of the ultimate gas pipeline. it's not about getting the money we have a valid contract it won't be a problem at all this option was brought up because it allowed for more pricing flexibility but it does not contradict anything. does gas program run in your risks concerning his projects in libya that's a question that often comes up when talking about the events in the middle east gazprom plans to continue its operations in libya were implementing a number of projects there. some of them are joint projects with our european

partners in particular with germany's being gus and italy's any we know that the italians are returning there so we expect that our operations will resume to. think very much shane good luck thank you for being with us and just a reminder that my guest today will soon be on gas drums scopes and that's it for now for all of us here if you want to add your sales for life correct someone in my ear think i sincerely next time to do up real. life will be back with more profound comments on the what's going on in and outside of russia until then stay on target and take it as a. india

is available in the grand central shirts of the. polish president kimball georgia they will resume monday beatrice the. taj mahal hotel. the cement hotel. hotel. the meridian the leader of the. church and. maybe her clear introduction ramona pulls a. maiden believe part was a movie done medicine ship and it was promised but they promised.

police on our team putting the wheels in motion moscow ushers in a new era of energy security for western europe as a. pipeline begins pumping russian gas straight to germany and. the new supply route the. transit countries which a previous european consumers of russian gas in the cold with of the details in just a few moments. russia issues another stern warning against israeli military action against iran as president dmitry medvedev says it could spell a catastrophe for the middle east. and greece politicians scramble to save the country as they inch towards deciding on a new crisis leader r.t. asks what greeks themselves think years ago that italy is next in the firing line where debts are piling up ahead of record borrowing costs.