Sputnik: South Stream Cancellation Causes Economic Loss in Balkan Nations

After Russia’s leader Vladimir Putin cancelled the controversial ‘South Stream’ natural gas pipeline, the nations of Southern Europe are facing increased risks to their businesses, who contracted to participate in the project’s realization, as well as overall economic frustration, as the pipe, if constructed, would have brought plentiful gas transit money into the region’s emerging markets. The recent developments have sparked a discussion about possible compensation payments from Russia for its sudden unilateral decision.

The South Stream gas pipeline was designed as an alternative route for the Russia to supply Europe fuel, bypassing the Ukrainian pipeline, as Kiev has embroiled in war during the last year, adding to its already damaged reputation of an unreliable supplier, as a legacy of its mid-2000’s gas disputes.The South Stream pipeline would link Russia through Bulgaria and Serbia to Hungary and Austria and many local construction firms were planning to participate in the infrastructure development, thus boosting their revenues. MORE