Turkish Stream postponed because of Russia, not Turkey

Nearly 10 months ago, on Dec. 1, 2014, Russian President Vladimir Putin surprised the world with the announcement of the cancellation of the South Stream Project, a pipeline to be constructed under the Black Sea and through Bulgaria to supply some 64 bcm natural gas to European countries. Instead of this project, he announced an agreement with Turkey on the construction of a new pipeline, this time via Turkey and Greece, to carry Russian gas to the European continent. 

Putin?s move came after the European Union refused to give a green light to the South Stream Project mainly because of political reasons sparked after Russia?s annexation of Crimea and its continued pressure on Ukraine. One of the first consequences of this new Cold War between Russia and the Western bloc was the cancellation of the South Stream Project in which Gazprom had already invested some $5 billion.

The United States and the EU had imposed significant sanctions on Russia since its annexation of Crimea, and there was no way to realize another pipeline project from Russia to Europe under these circumstances. Then came the idea of proposing to Turkey the construction of a new pipeline that would bypass Ukraine and EU regulations. In return, Russia offered a discount in the price of gas it was selling to Turkey. 

Months-long discussions have not yielded a result, as the two countries have not been able to agree on the terms of the pipeline project as well as on the amount of the discount. As this column suggested a couple of months ago, Turkey?s reluctance in moving forward on the project has proven itself, as Russian pressure for the immediate conclusion of the agreement was rebuffed. 

Finally, it was Gazprom Deputy CEO Alexander Medvedev who admitted the...