EU TO BYPASS RUSSIA

Deal to boost key EU gas project
Oana Lungescu, May 8, 2009 (BBC News)

"…[Anxious to improve energy security after a Russia-Ukraine row in January cut gas supplies, the] EU has signed an energy agreement with [the leaders of Azerbaijan, Georgia, Turkey and Egypt] aimed at developing a "southern corridor" for gas supplies bypassing Russia…It commits them to speeding up the construction of a long-delayed pipeline to bring Caspian gas to Central Europe.

"Key to this meeting was a commitment by Turkey's President Abdullah Gul to sign up to an agreement on the construction of the Nabucco gas pipeline by next month…In a symbolic gesture, the agreement is to be signed in Turkey, after years of haggling over transit rules…Mr Gul also made clear he expected some progress on Turkey's stalled EU membership talks.

"…[T]he Nabucco pipeline [across a new "southern corridor" dubbed the "modern Silk Road"]…will stretch for 3,300km (2,050 miles) between Azerbaijan and Austria…[and hoppefully] start pumping gas by 2014."

click to enlarge

"But Russia, which supplies one-fifth of Europe's gas, is nervous about any pipeline it does not control…The representatives of Kazakhstan, Turkmenistan and Uzbekistan refused to sign the agreement…because - diplomats said - of Russian pressure…Iraq, which was also invited at the meeting, did not send anyone, although it is expected to sign an agreement on energy with the EU soon…

"A Czech official…said, the EU had just been talking and not being serious [for 15 years] - now it has to put its money where its mouth is…[Or] Central Asian countries would be pushed to sell their gas to Russia and energy prices in Europe would skyrocket…

"Work is scheduled to start on Nabucco in 2011. It is expected to cost about 10bn euros…"