gazprom has recently put the final signature to the agreement to start construction of the south stream project the pipeline will transport russian natural gas to europe bypassing ukraine doing so the company wants to and transit cost disputes with ukraine which happen almost every winter now after five years of negotiations gazprom is in a hurry just ask construction work is scheduled to begin before the end of this year also president putin has ordered gazprom to pay more attention to emerging shale gas market that as some experts believe may challenge gazprom predominance. her missed a very welcome to the show thank you very much for being with us and all the banks thanks and let's start with the news with the news related items well first of all president putin according to the news has asked nava tech to cooperate with gazprom on signing contracts on your mouth liquefied natural gas exports how do you see

this cop ration does it mean that gazprom will have to share its consumers with no overtake how big is potential of the russia's share on the global energy market here but the situation is quite different there is no conflict of interest here and one board especially in view of the problem with ten percent shareholder of know what their and everybody should do its job with its part that is foreign shareholders will develop production as if occasion of the gas and we export company of russian nation. should do our utmost to get best possible conditionals. and. finally west when decision of your mother when she will be done in this dissipated next year will. contract the gas and will really do in their job to find the best markets. ok another news related

question bill gary received a significant discount on russian gas about twenty percent it's reported well reports say the discount is given in exchange for the agreement to build the south stream is a true sarong treatment this it was just a lucky coincidence that the demons have been signed new long term contract ten year contract with the gas to deliver two point nine billion cubic meters. for the bug area in market and the final investment decision on. part of south stream but in no way this agreement or subject the one to another so we are not. a commercial activity with investment projects obviously it was in the interest of. to finalize it in due time and

we have done it splendid should have a plan to sign the contract the one we call about you to. solve it was performed in other words it was a business decision not a political solution. is it true that the south stream may be double the estimate time in the cost some analysts have estimated the cost as high as over twenty billion dollars and gazprom is expected to pay half. could it lead to bankruptcy if your company. first of all of this figure is far away off. if you really believe if i will play chess. it should be diminished two times as a base actually it will be it will be substantially low and the final figure will be done as well as all the project the communication will be ready but. not stream . so three projects will be economical canonically fusion project.

does absolutely competitive perry have to transport our guests to you so you you count on the calculation that that sounds three will pay back but do you how you how would you assess the risk of the project the south stream project in general has it's not exempted from the third energy package but we didn't apply for exemption because we phrased that fortunately. strange behavior of european commission when we applied for exemption in case of consideration of the notes three. projects which. in which all your russian gas could show up but there was always we didn't get one hundred percent capacity or it's too few to fulfill exports and. this topic human became a topic of the meeting between president putin the chancellor merkel. because we

can't tolerate the situation where he could not be fulfilled that somebody believes that so but again should show up in the pipeline compete jewish and religious could start the ins a market not before the market and not an expert pipeline getting back to the prices the south stream deal was strike amid accusations in unfair pricing in the european commission's probe. is gazprom ready to to to make concessions because the prices on the spot market are already corrected about the price of the reasons standard practice in our export contracts and it's a little bit strange that now everybody is looking at all gas prong. diminished price in the reflection of the some market changes but in the history of expert activity it was quite a number of occasions when we applied for the price increase and we have reached. a

substantial increase of the price so it's a normal business practice to the market situation to keep the gears competitive and now we're sure that with the price revision we have done and by the way in bulgaria it was far away from twenty percent discount from. friends calculation was you could calculate was a different base ok maybe a relation to the previous prices. you see we agree that commercial terms and can you should not be disclosed in the normal practice but again i believe that we in no way could be reasonably used for the price. misconduct because our prices are not disturbed by us it's established by the price for buildings with oil in the press and by the way all products it's a commodity. basket stranger things international community exchanges are you suggesting that the european union is trying to get

a discount on the gas promised gas and that's what the european commission's investigation is all the bad book area is part of the european union does the discount have anything in common with that probe no absolutely it was a standard price revision procedure especially the use of the old contract expired actually prepared to a new contract and i could tell you the bulgarian prices apply lewdly in compliance with not only with our average wage price but also with the specifics of isolated markets like like bulgaria. market or sarabeth so there is no discrimination of any country and there is no any special preference for any country why is greece out of the project having some string noise bridges not closed with the main routes increase down but we still in consideration of potential connections. between the south stream and through greece to italia but

now the routine and usual routine course started getting. a second pipeline to eat a libya greece was a second best option in this respect but when the routine cause changed and going slovenian to eat only two three reasons there is no. currently we don't see enough of the month in italy to bring conditional guest readerly but. construction of such such a pipeline is a long story so so if the greek economy recovers can't can concretes be back board at least production pipeline could be could be in recession but it definitely will depend on how greek economy will recover because currently the existing code which includes allowing to deliver gas and the level of the amount is. around three billion cubic meters of gas that israel injury input potential so let's see if.

we hear that the demand for gas in the euro is going down it's becoming lower and lower every every year so amulets even suggests the south stream once built may not be fully loaded is gonna guess from ready for such a scenario no pipelines will be loaded because. to type of gas in south stream it's all guess. related to musician of export flows and they were the source of transit risk and that's when you guess how big bill does a portion of a new gas depends on the good month but whatever economic growth we will see in the room for local production of michelle gas in europe is going down dramatically in such that it's like great britain and. hall and so. you. will allow not only to. raise it raised but also to keep. this is sort of

for additional demand from whom so so so so you are not getting ready for such a scenario because because because it will not become so so so so so you because you are ready to load the pipeline fully whatever happens is that true it will be a load it will be loud in that. says alexander than it did deputy chairman of the board gas problem and director general of gas problems expert division spotlight will be back shortly often would take a break so stay with us we'll continue this interview in no time. to meet speak your language. programs and documentaries in arabic it's all here on. reporting from the world talks about six of the p.r.p.

interviews intriguing story for you here. in trying. to find out more visit our big don't all teeth don't call. the russian would be soon which brightened if you knew about the song from feinstein crashing these. green screens don't talk t.v. dot com. you won't go into the future don't look the old fashion but as the best and brightest tech minds gather in moscow some came to work while others came to play get up close and personal with devices that recreate masterpieces.

a leisure. search for the next big thing in the computer world. take the streets there has to. be. industry claims in the process is. slow. brings nothing. but the environment. and the industry isn't telling.

please. please explain. welcome back to spotlight i'm al green of in just a reminder my guest on the show today is alexandra deputy chairman of the board of gazprom and director general of gazprom expert division mr mcgee this sounds stream that we talked about a minute ago has a competitor the turn up. pipeline if it is constructed some analysts say that it may become a real compared to gazprom and that azerbaijan can sell its guys cheaper than gas prom is it true and is it is it really a threat to your business you know we don't see the night as a turn up nor in our book or west or east although mark as a competitor because. this thing of our project is different well diversified

export routes and all sorts of other pros are trying to diversify sources of supply but before doing good they should finally identify a way where is a source and how expensive it will be to not only to produce but also could you were to sell this is b.s. with gas already sold. the full capacity of was north stream and so story as far as i know there is no expert contract. from. one of these projects and that means our role is very simple we are not construction pipelines and you will solve the gas more we don't produce the gas and he was also the. expert. on the take or pay level is more than four trillion cubic meters of gas fields the year of two thousand so that's why i feel very convinced nobody.

could interfere in the project well speaking of interference ukraine is known for trying to interfere in your business more than once now the latest. news from kiev is that the ukraine and declared it wants to take part in the time nop project is it just a war of words or are they really really ready to participate logically for me it's very difficult to imagine chris jumping into the tunnel project that everybody could could see what they were ideas of coming to but. on. the brink of a jump they're there and they see industry knows what to do our partners knows what we're doing but the only sin which were a little bit concerned that instead of providing a proper legal entity in the wire a moment in europe with direct intervention or for in our business because i believe it's complete contradiction with the market principle when the producer of

the product is not allowed to deliver its product to the customers. and other news related question there are reports that gasper on has committed more than thirty eight billion dollars just to develop an east siberian gas field and build a pipeline to the pacific port of lot of our stock analysts suggest that it's a bid to lower the dependency on exports in gas to europe is naturally going to permit you know diversification is one of our slogans and therefore three to not only to diversification of the export of but also diversification of products we produce and to produce not only the actual gas both in the former felons rebuttals electricity and where by the way the biggest power generator in russia as well as all and on products and it allows us to have sold to a nation will hedge but also importantly reciprocation is

a market diversification southeast asia is the most fosters grows grown region in the world and that will mean that they will consume energy in the fastest possible way and such markets like china. japan. india and maybe in the five six years pakistan bangladesh not to forget vietnam will provide a premium. market to get from and where it just to deliver as much as it will be necessary to this market well if you like to talk about. diversifying your business not only you people from gazprom in general but as far as i remember gazprom has been ignoring talk about shale gas you've been in the studio more than once and you called it a bubble i mean and your boss mr miller compared to for example i think you shale gas you still have the same point of view and share gas or is it changing you know but we should. look at this this topic in

a very comprehensive way because it's a lot of still a lot of myths in this topic it's not occasionally that mr president the facts on toll that it will continue the legs are. not weeds able staves are trousers and my gears atrocitus are next on the expensive so it means that the current situation and the price of gas in the american market is very low to put dollars of millions of b.t.u. and it's not supported. production in the. wrong or won't ground actually supported ways erlich hydrocarbon say whaleboat currently in the majority of the shell gas reserves but. still the structure of pure gas reserves will not allow to deal with prices that's why many companies are selling as

a set of really so and we should not actually complain about show gas very well you from sold in the us because it opened a substantial technologically cations for the neutralization of gas interests. and the in bank areas in the rail transport and actually the vote for the gas business including guns bring business that's why we support the motor fuel topic in our plans not only in transportation of the mobile transportation but also in maritime transportation and i believe we could find a lot in common with our canadian and american colleagues and there we already got some proposals to work together in britain given complication of this and just put in place ten percent of the trucks in the unit could create a market of additional eighty billion cubic meters of gas barrier so prosperous looks very nice and if shale gas is helping to do it with the support of the shale

gas ok so so so so you're moving all that i mean your point of view and shale gas well you seem to be really to be paying attention to what the president says about your business well let me put now want to quote him recently talked about shale gas and what's what's here's what he said we must take into account current developments and have a clear view of how the situation will develop not only in the next two or three years but with the next decade and quote doesn't mean that that gas probably will really be telling its face to once shale gas and move change but we're never close ties. with all of the problems inside and out. but we should not forget that shell gas associated with the shale oil which is another topic and actually exists when it's combined it's created such a situation like we see in the u.s. . today but you know nobody could stop technological progress but.

shale model of us could be. could be developed in the europe or even in china or in russia because russia also holder of substantial reserves. resources not arizona because the quality. resources reserves it took a lot of time and money but i believe for the current. century we will be busy with additional reserves maybe in the more difficult areas like arctic shale or eastern siberia and far east like china and the project in which will come egypt will raise the investment decision the construction of a new pipeline the. school us folk so i believe i do live over to be in good in business like usual and what we want from illegal it is just allow us to work since you've mentioned the arc six. there is an opinion that that the shell gas on that story shale gas is closely connected to stockman out there and that a big big big story in your industry people say the gas pump pulled the plug on

stockmen gas field because of the increase in u.s. reliance on shale is it true and why did you really. believe this model was the main market for stock when shell be shelled the american and canadian market now with us and even considering to become an exporter by the way it's not norway as it will it was with a low gas to be exporting from from north america. but. i mean i mean there's a market in asia in jail but it doesn't mean that the law is the market it's not occasionally again that we've just recently. convicted. two million tonnes of illinois before and. by the way it's another good news for gas pros that research. first then courier was. not so good.

which was not exploded for many many years or actually it will mean that we could be used both ways west east and east west using historical time it'll energy minister alex. sandor navarre expects russian gas exports to fall four to five per cent in two thousand and twelve why do we see export figures going down and what part do you see and what parts do you see the phone demand. but two factors here the first one is a very weak economy situation in europe and the second one. is the temperature situations bourse insomuch because summer was not to hold that's why air conditioned you don't consume too much gas. when electricity. called you don't consume too much gas and. until now we don't see. good

temperature for consumption. temperature in europe is substantially higher of a reddish waited for for the last maybe fifteen twenty years so there is no budget in us just to sell as much gas as possible to get this to sell as much gas. will be efficient to sell and that's why we. are not just running for good round figures specially we use it when the position to optimize production of our main gas fields. and it will be in the decline of production by the way of oldfield's who was lower than expected in the past plus we introduced by the field which is one of the journalists in our crowd. and the guess is transported was a new methods in a very efficient way so we as i told you we will not just

deliver to the market we will develop the market including. your placation of gas thank you thank you very much and i just help have that. new ice age is not is not an option you will not be unless i decide that expects for having and just a reminder that alexandrovitch veggies deputy chairman of the board of gazprom and director general of gas terms exploitation and that's it for now from all of us if you want to ask yourself what life. would be back to. more of them coming from lifetime internet russia and then stay in a tent and take it as it says. plug

mission and free accreditation three times for charges free to make minced free. free studio time free. download free blogs just plug in video for your media projects and free media and on to r t v dot com. play. it. play. play. play. play. play

play play play. i play.

british. find out what's really happening to the global economy. there are no holds.