Reuters: Russia's South Stream gas line viable but legally risky (Analysis)

Russia's South Stream pipeline project for transporting gas to southern Europe is economically viable, despite its price tag of $45 billion, but legal issues with Brussels risk derailing the entire endeavour.

In a sign of the strategic but fraught relationship between Russia and the European Union, state-controlled Gazprom this month opened a new office in Brussels, taking up two floors of a city centre property.

In town for the opening, Gazprom Deputy Chairman Alexander Medvedev called in at the European Commission, the EU executive, and offered concessions to try to settle an EU investigation into charges it has priced gas unfairly.

The Commission has yet to decide whether the undisclosed measures are enough for Gazprom to avoid a multi-billion euro fine.  MORE