faces criticism following their chairman of building the lowest ever underwater gas pipeline spotlight ali interview shows up next. we'll. bring you the latest in science technology from the realms. we've. covered. hello again to spotlight show. today my guest in the studio is. the first consignment of russian gas. underneath the baltic sea.

is finally up and running from now on be delivered directly to western europe bypassing troublesome transit. is expanding operations in both europe and asia now. one part of the south is to be built in the black sea a few other projects are underway in the far east all this. is gazprom up to becoming a real monopolist and is russia going to use its gas as a political tool. once fully operational the north stream pipeline will supply twenty six million european who was russian guess it's a pricing dispute. running through transit countries the. billion dollars and has been hotly contested from the very beginning critics say it's not

only super expensive but also politically motivated as the dependency on russian gas is. europeans feel the kremlin needs bountiful supplies as a strategic weapon. and thank you for coming to our program hello first of all let me congratulate you on a 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 to 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. mystical prion of first far is. 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

land pipeline do not differ very much construction costs. 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 vs money to ourselves. 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 one of 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 to the project to pay sway. it's not going to happen soon but anyway yes pipelines never pay off quickly 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 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. 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 russian gas 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. simply impossible. i wasn't clear of just a couple of weeks ago the number one political news which is on everybody's mouth is certainly the rest of you. people in the streets say that's with your being

thrown into jail ukraine is going to revise its guy's agreement with russia as a guest from representative do you think about it we'll discuss agreement really be revised remain in force until it official expires. i think we should separate these things as photo machine cose case it has nothing to do with ukraine's gas contracts with russia of course but in cave they believe these two things are insolent they consider them to be the links of one chain well that's what people in the streets say i believe but 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 where 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 are prepared to improve your gas relations with the crane but there's no need to bring revise the existing contracts is it so. it's absolutely true the phase one of the north korean gas pipeline is meant to put an end to gas supply disruptions in europe spotlights there are reports. bill de gea stream dates back to the nine hundred 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 given the gas at reduced prices ukraine was also caught illegally taking gas from the transit pipeline on more than. one occasion unable to reach an agreement with key of russia was poor still got off 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 north stream which trans under the baltic sea and has just begun pumping gas to europe and south stream which trends 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 operational means the 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 more birds is a true energy security he's not going to be fooled until south stream is launched because north and south stream so the links of one change. off course it is true

they are the links of one chain by having launched no 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 of. the construction of south stream is carried out according to plan. and we're working toward a fixed completion date that is the two thousand and fifteen is it a real figure it will this is the schedule we have right now will these deadlines be met yes of course so is. castrol the spokes spotlights will be back shortly we will continue this interview also will take a break say we will go. from

los angeles to chicago to birmingham twenty trauma centers have closed since two thousand severe problem is not enough in-patient beds not enough urgency department beds and not enough nurses. to take care of all the people who are the only real health care system that we have in the city of los angeles is the los angeles fire department in fact when i started my venture as a firefighter i didn't want to do and i started out going to just do firefighting it's about eighty two percent of what we do the far in this medical had a risk you know waited four hours for i waited sometimes three hours but i wouldn't say it's a francis in lynnwood for four hours and fifty minutes standing against a wall with patients and we have a federal law that mandates that you can't turn no one away who seeks care in an emergency room.

we have the most expensive health care system in the world and it's probably valued the least. in canada and the us that it is legal for. a bubble bath on your baby that contains a known carcinogen something that causes cancer most of the things that most. independent they are sponsored by industry and most of the time they don't claim it's a conflict of interest today an average cancer drug prescription costs nearly one thousand six hundred dollars a month oh my god i'm a nobody with cancer in my family therefore i protect focus because ninety to ninety five percent of cancers hurt people with family history of cancer the pharmaceutical industry spends about fourteen percent of their budget on research

and development and about thirty one percent for marketing and ministration. in fact there are more pharmaceutical industry lobbyists in washington d.c. than members of congress. welcome back to spotlight love and just. show today is. on the gas problems spokesman. in 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 choose to any ukrainian t.v. stations you will hear statements by politicians. at a higher price than anyone else that no other country pays as much as ukraine the

first question is the treaty true and the second is gazprom ready to cut the price way. early i send that any prize console changes to the sistine 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 eight with the prize paid by its european neighbors. then there's 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 brahms contract with deloris is due to expire soon but with that country you seem to have gone further in the negotiations agreeing on price cuts in 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 balor routes. 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 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 and 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 i 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 nord stream two 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 nord stream but to tell you the truth it's not a full exemption the same as for 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 gazprom 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 do us within two years time will gas proceed to disputes it's 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 encouragement 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 spec to any court cases or will some clarifications be sufficient. well first of all no accusations have been brought against us was that the reason. 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. that's rushing to nz to speed up the east for expansion . meaning energy exports to china.

plans to develop its span droops 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. 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 gazprom gazprom meet 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 is 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 of 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 so the chinese have been tough for the gas prices sought forty billion used in advance payment but they refused can you confirm that is it true that this was the reason why you don't have the funds now to begin the construction of the gas pipeline. it's not about getting the money we have a valid contract it won't be a problem. this option was brought on because it allowed for pricing flexibility but it does not contradict anything. does gaspar running the risks concerning his projects in libya that's a question that often comes up when talking about the events in the middle east yes

brum plans to continue its operations in libya we're implementing a number of projects there. some of them are joint projects with our european partners in particular with germany's being gas and italy's any we know that the italians are returning there so we expect that our operations will resume to. think very much and good luck thank you for being with us and just a reminder that my guest today will still be gas prawns. and that's it for the hour for all of us here if you're still spotlight for someone in my ear think i. will be back with more profound comments on the was going on outside russia until then stay on target and take a present. the

of. the limits to sue slips tse feasts. coming. to. the.

russia switches on only this underwater gas pipeline in the world to pump fuel directly to germany and beyond making european energy supplies saved but. also the leaking of the u.s. atomic washtubs report alleging iran is running a nuclear weapons program sparks criticism from moscow russia publication is an appropriate while the us administration is preparing new sanctions against tehran. and controversial iranian program italian prime minister silvio berlusconi promises to step down but only after the parliament approves the country's budget for next year and they cannot make reforms to grapple with a spiralling prices. and as the headline is now as financial play cripples more and more european countries all she's peaceful about are his guests discuss if there is any chance to fix the eurozone crisis cross-talk risk of you next.