Natural Gas Europe quotes Eurasia Center Deputy Director David Koranyi on challenges facing the South Stream pipeline:

Even before Russia’s seizing of Crimea and Russian forces’ territorial incursions into Ukraine, the realization of the South Stream pipeline seemed problematic, according to Dávid Korányi, Acting Director, Dinu Patriciu Eurasia Center at the Atlantic Council.

“It’s difficult to foresee how South Stream will evolve,” he says. “It’s a function of the Ukraine-crisis and a possible political showdown with Russia, but also how the EU investigation against Gazprom will turn out in the coming months.

“It depends on the EU-Russian energy relationship as a whole,” he continues. “Gazprom’s business model in Europe will have to fundamentally change in any case.”

Mr. Korányi says this should all be seen in the context of the broader deteriorating relationship between Russia and the EU, which is not likely to grant South Stream third party access (TPA) exemptions as offered to Nord Stream earlier or the Southern Corridor.

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