Voice of Russia: South Stream background

South Stream is a project to build natural gas pipeline, which is designed to transport 63 billion cubic meters of Russian gas per year into central and southern Europe. Involving seven countries and extending 925 km across the Black Sea through Turkish territorial waters, the South Stream pipeline represents one of the most ambitious infrastructure projects ever.

Officially, its major goal is to strengthen the energy security of the European Union by providing a direct connection of some of the largest gas reserves in the world. The key element in this scheme is to bypass the territory of Ukraine. Maxim Edelson, Senior Director, Natural Resources EMEA at Fitch Ratings in Moscow, says not only the ability to deliver gas directly to its customers removes the transit country risk, it also gives Gazprom an opportunity to negotiate better terms with its European partners.
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