Skip to comments.Ukraine's pipelines will lose 50% of value when South Stream starts - Naftogaz head
Posted on 07/30/2014 12:50:43 PM PDT by Lorianne
The South Stream gas pipeline, which bypasses Ukraine, may halve the value of Ukraines gas transportation system (GTS), according to Andrey Kobolev, head of Ukraines national oil and gas company Naftogaz.
After the Russianled South Stream project is complete and working at full capacity, the value of Ukraines GTS may fall as much 50 percent from the present estimate of $25-$35 billion, RIA Novosti quotes the head of the company.
We have no wish to lose it, and its unreasonable," Kobolev said on a Ukrainian local TV channel.
Construction of the South Stream pipeline in Bulgaria and Serbia was suspended following pressure from the EU to comply with competition law. After a while construction resumed.
"They [Gazprom] are ready to invest their own 15 billion euro in South Stream construction This gas pipeline will take away from the Ukrainian transit potentially up to 60 billion cubic meters. Currently the transit carries 86 billion cubic meters," Kobolev said.
Previously 110-120 billion cubic meters were fed through Ukraine, but now the Nord Stream pipeline has taken a share of it, Kobolev explained, and concluded that once South Stream is operational Ukraine could be in a very difficult situation.
(Excerpt) Read more at rt.com ...
The deal Russia offered them looks even better if that’s the case and the austerity measures IMF forces Ukraine to make will be even more harsh, too.
What's your estimate of the change in valuation South Stream coming on line would make?
The story is from RT. Need I waste more time with you in explaining what RT is?
Who is putting the gas into both routes and who would know how much they're planning to change how they route the gas between the two lines?
Seriously, I'd like to know where you'd draw that line as opposed to a biased source like RT.
Joe Biden's son got fired already?
Sounds like RT is telegraphing in part how they're going to respond to sanctions related to Ukraine. They'll reduce what flows through Ukraine to make it take longer for investors get their investment back and/or decent return on their investments.
Reading tea leaves I guess.
I notice that whenever these articles from Russia Today are posted here, you never spell out the name.
Is there some reason for that??? Are you ashamed of your mother country???
Obam, via his front man McCain, tried to get the Baltic states to break the agreement for South-Stream.... Yats was furious , he knew what this would mean for Ukraine if they didn’t get the revenues needed.
It’s no accident when he couldn’t get the votes in Parliament regarding passing who gets control of the oil.
Unfortunately Yats would soon learn too late that he was caught in the middle of the “ Former Oligarch” oil wars....and all the rest of the corruption inside and outside Ukraine.... Course he was probably a part of it since he was in the Ukraine Gov. prior to the revolution.....but he walked just the same.
Posting propaganda from Putin's lapdog media is disgusting. Any time spent analyzing or commenting on RT stories is a huge waste of time. Yesterday, one of you Putin-lovers posted a Youtube video of some Russian whore in Eastern Ukraine as if it were some legit story. WTH is happening to this place?
It’s a good idea to know what both sides are saying...you better believe Washington is watching what all Russian Media is saying...and commenting....so are our businesses and Industry and the International Community overall.
FR has always been a place we could view both sides.....for crying out loud we all dislike Obama yet we post his stuff as well and comment.
Quote: “Construction of the South Stream pipeline in Bulgaria and Serbia was suspended following pressure from the EU to comply with competition law. After a while construction resumed.”
Let me guess...the “competition law” would (in effect) outlaw competition -as cruel and unusual?
I honestly don't know how Ukraine can do what the IMF is demanding of them without much, much, lower energy prices for themselves, and much higher income from transit fees to keep the people from going wild again.
I don't see why people in Western Ukraine are any more docile than they've been in the past and they were in the streets of Kiev in what, 2004, 2010, and most of 2013? Every time over the top people in government needing changed.
Ukraine is a tar baby and anyone who gets stuck to it regrets having done so.
....”I’d love a second opinion on what South Stream really does in the way of altering Ukraine income but people don’t seem to know. I had it figured at between 40% and 50% on my own looking at the capacities and destinations”......
Not being in the oil business I haven’t a clue...but Yats reaction was thunderous if it went through. When you add the austerity measures, which as you said would increase, and those who will surely shave off the top any Gov. revenues...Ukrainians aren’t going to come out of this as they’ve been promised......
As one Oligarch said laughingly and with much conviction....”In Kiev there is no end to Revolution!”
LOL, probably got promoted
“America should use all instruments at their disposal to “stop the war.”
State Dept says:
...”Russia needs to stop the war...”