International Policy Journal: Canceling the South Stream Project: The Woes of Energy Insecurity

The negative impact in the Balkans has been notable, and replays in several ways the delicate politics between Russian interests in the region, its tiptoeing with Turkey, and European demands that various EU “rules” be complied with. Always caught between in the vice of history and the powers of expediency, the Balkan states have rarely made it to the winners’ podium. Several countries on route were posed to benefit, both directly and incidentally. Instead, the South Stream has been exited in favour of a Turk Stream. “This is what the New Great Game in Eurasia is about,” posed the Asia Times.

Serbia has felt the cancellation keenly, more so for the fact that Belgrade sold a majority stake in its own state oil and gas company, NIS, to Gazprom in 2008 hoping to get something in return. As early as November 21, one of Gazprom’s subsidiaries issued a call for builders, welders and mechanics to assist in construction of its Serbian leg of the pipeline. As Branko Tasevski of the Veco Welding Company located in Zrenjanin explained, “We thought we’d earn enough to sustain us for the next five to six years. We lost not only potential profits but also references for future deals.”

Such a deal suggests the parlous nature of energy politics. Deals done one day may be neutered the next. The 2008 NIS-Gazprom deal might have been seen as having fraternal freight on future energy construction passing through Serbia, but it was not to be. “We sold them the family jewels, as brothers,” argues Misa Brkić of the Serbian weekly Novi Magazin, “without asking for any guarantee that they would make good their promise.” Lack of clarity has always been the case when making concession over such jewels.

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