FX.co ★ Gazprom sets up new company to construct gas pipeline to Turkey

Russia’s Gazprom has started registration of a new subsidiary which will build a gas pipeline to Turkey, Gazprom spokesman Sergei Kuprianov said in a statement.
The South Stream pipeline was planned to be laid across the Black Sea from Russia to Southern Europe. In 2012 the European Union introduced new rules for the energy companies, making the process of the Russian project stall.
During his visit to Turkey on December 1, 2014, Russian President Vladimir Putin said Russia will stop construction of the South Stream gas pipeline noting that it is impossible to continue the project in current conditions. Russian Energy Minister Alexander Novak and Alexey Miller also officially announced the closure of the project.
Simultaneously, plans about gas pipeline construction across the Black Sea directly to Turkey were announced. It is expected that the delivery through the new pipeline will fully cover the gas needs of Turkey. It would take about a quarter of the pipeline capacity. The remaining 50 billion cubic meters will be delivered to a gas hub at the Turkish-Greek border. European consumers will be able to buy gas there.