Prime Minister Vladimir Putin has expressed gratitude to Turkey on granting Gazprom the permission to build the South Stream gas pipeline along the bed of the Black Sea, in its exclusive economic zone. He further said that it will stabilize the energy supplies to European market. Russia has also agreed to prolong the two contracts on gas supplies until 2021 and 2025.
The gas export monopoly would boost gas supplies to the region by eight percent. The Southern Stream pipeline will transport 63 million cubic meters of gas to central and southern Europe, diversifying the gas routes away from transit countries.
The neighboring ex-Soviet republic accounted for 80 percent of Russian gas transit to EU, but due to the frequent rows with Moscow, the routes were cut off. It is said that Turkey’s permit to build the gas pipeline won’t have consequences on the gas price formula that are linked to petroleum product prices.