EU calls stop Russia gas pipeline project

The European Union halted two large-scale pipeline projects for Russia to send more natural gas to Europe, and further pressured Russia into the Crimean region.

This move will blow Russia’s increase in natural gas exports and bypass Ukraine’s transportation. The EU is weighing other options to reduce its dependence on Russian gas. One third of the EU’s natural gas supply comes from Russia. The natural gas of six EU member states, including Bulgaria and Lithuania, is completely dependent on Russia.

The European Commission said this week that it will freeze high-level negotiations on the South Stream project. South Stream is a pipeline that plans to deliver up to 15% of its annual gas demand to Europe via the Black Sea. The project is scheduled to be completed in 2018.

This week, the European Commission also blocked Gazprom’s plan to transport more gas through the OPAL pipeline. OPAL is a 290-mile (470-kilometer) natural gas pipeline that transports Russian natural gas via Germany to the Czech border.

The European Union regulations prohibit Gazprom AG from gaining full OPAL rights, saying that the utilization rate of this pipeline is low. Gazprom has asked for an exemption. The European Commission originally scheduled to approve its request on Monday, but now said it will not make a decision.

Julian Wieczorkiewicz, an energy researcher at the Centre for European Policy Studies in Brussels, said that these two moves are a political signal.