Europe becomes aware of unprofitability of the South Stream project

The South Stream gas pipeline project on transportation of gas from Russia to Europe will give nothing to the latter, but an additional route of Russian gas supply under special conditions and at the uncompetitive price, European expert in the energy sphere Borut Grgic thinks.

“As far as the European Commission’s function is to be a guarantor of competitiveness and free market, it’s logical that they begin to refuse South Stream. Europe needs for diversity of energy sources, not for larger volumes of Russian gas,” – he said in interview to 1 news.az.

Recently the European Union demanded from Russia to review intergovernmental agreements with several European countries, through which the South Stream pipeline will be laid. The argument was the fact that the project doesn’t comply with rules of the Third Energy Package, according to which gas suppliers can’t be owners of gas pipelines.