On the Western Front ...there is something new. European Commission President Jose Manuel Barroso has warned that the EC would take actions against Bulgaria for failing to comply with European energy rules. While Prime Minister Oresharski vowed in Brussels that Bulgaria will comply with the recommendations of the EC, the start of construction of the South Stream gas pipeline was announced in Bulgaria.
Meanwhile Bulgarian Energy Minister Dragomir Stoynev said in parliament that talks over the South Stream project will continue despite strained relations between Brussels and Moscow. Even NATO interfered in the controversial case as Secretary General Anders Fogh Rasmussen announced reducing energy dependence on Russia as a priority, while the "South Stream" actually deepened this dependence.
Who and why managed to stir up the hive called South Stream? It is true that the European Commission repeatedly warned Bulgaria over breaches of EU law in the construction of the South Stream pipeline. It is also true that despite all this the Bulgarian government remains firm in its position to build the pipeline. Could Bulgaria become a scape goat of geopolitical games between Russia and the U.S.? Is there a new cold gas war going on? Gas battles have long ago stopped being led under the table. Offended by isolation and reduced energy influence in Europe, Russia managed for a day at 4:00 in the morning to complete with China a gas agreement, talks on which previously took 10 years. This way Russia increased its influence in Asia.
This has irritated Brussels and Washington that are trying to put Moscow in the corner. In the common energy policy of the EU ‘an enemy with party ticket’ also emerged. NATO Secretary General Rasmussen said that the support of Bulgaria, Austria, Italy and others for "South Stream" highlights the gap between the plans of the EU and the concrete results of a common energy policy.
We ask then why did Brussels criticize only Bulgaria when others are involved too? It is true that this country holds a strategic asset in the project – it is the EU entrance of the gas pipeline and has been trying to change local legislation in order to launch the project. But while criticism from Brussels focused on Bulgaria, Austria also joined the gas game despite knowing the EU position. What about Italy, which is interested in South Stream too?
On the other hand, despite the sanctions against Russia a few days ago European energy players signed contracts with Russian oil and gas companies totaling millions during the economic forum in St. Petersburg. They once again proved that the interests of capital are different from political directives.
Why did South Stream become a hot topic for the Alliance? According to Rasmussen, if Bulgaria, Romania, Greece, Cyprus and Croatia developed gas projects on their own territory, this would increase gas production and the ability to export to other European countries. Apparently, the NATO chief is acquainted with the CIA study showing that Bulgaria is 73rd in world when it came to gas production. Although domestic production covers only 10 percent of local consumption, the potential for development is great. If you ask yourselves why there is such attention towards the region, the key is probably the delivery of U.S. liquefied gas to Europe. The construction of 6 new gas terminals has started in the EU. Russia can no longer remain a dominant factor on the old continent and became a competitor of the United States with shale gas extraction in Siberia.
Lobbying groups in Europe are also not to be underestimated. Some European leaders have already proposed alternatives to Russian dependence while a report of the European Commission from May 28 reads that Bulgaria, Romania, Hungary and Greece are particularly vulnerable to interruption of gas deliveries through Ukraine. If Russian deliveries stopped, the price of liquefied gas will rise. That is how the hot topic called "South Stream" started to affect everyone. But as it says in the Godfather: “Nothing personal. It is all just business.”
English: Alexander Markov
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