South Stream Focus of WikiLeaks Exchange

A November 2009 diplomatic cable from the American Embassy in Russia sheds an interesting light on the Gazprom led South Stream pipeline project.

In a meeting between the US Ambassador and Mattias Warnig, Managing Director  of the Nord Stream AG, Mr Warnig is reported to have said that although “he is a 'de facto employee of Gazprom,' he personally believes South Stream is unlikely to be built anytime soon."

Warnig added that as difficult as the political problems were for Nord Stream they were much worse for South Stream. The political roadblocks to building a pipeline across the Black Sea could be insurmountable. Since Ukraine would be unlikely to give permission for the pipeline to cross its Black Sea territory, South Stream would have to cross Turkish waters. However, Turkey would also be unlikely to allow a pipeline that would bypass it as a transit corridor to the rest of Europe.

In response to the Ambassador's questions about the existing gas transit corridors, Warning noted that they are unlikely to diminish much in importance. He said Putin had made a firm commitment to Poland that the Yamal pipeline would continue to be used to capacity.

As for Ukraine, Warnig said the pipeline route through Ukraine "simply cannot be replaced." Asked if Putin understood this, Warnig (who is known to have close ties to Putin) said "he does." Warnig declared that Ukraine would always be the main transit country for Russian gas to Europe.

Warnig, a former officer in the east German secret police, the Stasi, runs day-to-day affairs in the Nord Stream consortium.

Read the Full Wikileaks cable HERE