Wednesday 25 June 2014

Gazprom to Build Gas Link to Austria Bypassing Ukraine With OMV - Bloomberg

Gazprom to Build Gas Link to Austria Bypassing Ukraine With OMV - Bloomberg:



"OAO Gazprom, Russia’s biggest company, moved forward on building a natural gas pipeline to the European Union to cut transit dependence on Ukraine, the same day Russian President Vladimir Putin asked lawmakers to revoke a right to use force in the smaller country.



Gazprom and OMV AG (OMV) agreed today to create a joint venture to build and operate the 50-kilometer (30-mile) section of the South Stream pipeline in Austria at a signing ceremony in Vienna. They approved a final investment decision for the link, with capacity to carry as much as 32 billion cubic meters of gas a year, Gazprom said in a statement. That is about 20 percent of Russian exports to Europe.



Russia has pushed for South Stream after years of disputes with Ukraine, which carries half of Gazprom’s Europe-bound gas through its pipelines. Russia cut deliveries to Ukraine this month over debts as tension between the former Soviet allies mounted. Pricing rows disrupted EU flows during cold weather in 2006 and 2009."



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