Russia Drops South Stream 930km Sub Sea Gas Pipeline Plan

Russian President Vladimir Putin says the proposed South Stream gas pipeline will not go ahead.

Speaking on a visit to Turkey, he said Russia would instead look at creating a gas hub on the Turkish-Greek border.

Mr Putin blamed European opposition to the South Stream plan, which was funded by Russia’s state gas giant Gazprom.

The pipeline was to have run under the Black Sea to southern and central Europe, providing another transit route for Gazprom.

But the EU has been worried about the gas producer also owning a pipe network.

Construction work on the 930km (580-mile) South Stream project began in Bulgaria in October 2013 but was suspended in June after the European Commission said it may be breaking EU competition rules.

Gazprom supplies 30% of Europe’s gas - some 15% of it via Ukraine.

Russia and Turkey are major trading partners. Russia provides the bulk of Turkey’s gas requirements and is set to build Turkey’s first nuclear power plant.

Russian officials accused the commission of blocking the work for purely political purposes.