Putin: South Stream could be completed before Nord Stream

Holding a joint press conference with Finnish Prime Minister Matti Vanhanen in St. Petersburg, Putin recalled that Russia's Gazprom and Italian oil group Eni, which are to build the South Stream pipeline together, previously constructed the Blue Stream pipeline, a trans-Black Sea gas pipeline that carries natural gas from Russia into Turkey. Putin noted that he believed it would not be difficult for these companies to work together to build the South Stream pipeline. Putin said he hoped that the Nord Stream project, which is expected to begin operation by 2012, would be built according to schedule.

During Putin, Italian Prime Minister Silvio Berlusconi and Turkish Prime Minister Recep Tayyip Erdoğan's teleconference on energy affairs last week, Putin said the South Stream project might be completed before the Nord Stream project.

The Nord Stream pipeline, which will pump gas from Russia to Europe under the Baltic Sea, bypassing Eastern European transit countries, is being built jointly by Russian energy giant Gazprom, Germany's E.ON and BASF and Dutch gas company Gasunie at an estimated cost of 7.4 billion euros.

Putin said all of the required equipment has already been acquired and the necessary environmental analysis has been completed for the Nord Stream project. A number of natural gas producers and purchasers from European countries are involved in the project, Putin said, adding that the project is also of great importance in that regard. Readying the necessary permits related to environmental and economic issues is highly important for the completion of the project within the scheduled time, he stated. Saying that he hoped the project would be completed in line with their planned timeframe, Putin added that the South Stream pipeline might be completed even earlier than the Nord Stream pipeline, as construction is about to start and the geological and seismic work has already begun. Putin praised the rapid decision making of the Turkish government and asked the Finnish side to do the same thing.

Last week Turkey announced its decision to allow geological exploration in its Black Sea economic zone as part of the South Stream project.

The required permits for the Nord Stream project should be granted by year-end at the latest in order for it to be completed by 2012. The Finnish prime minister assured Putin that the necessary permits would be issued in a timely manner.