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Russia's new route through Turkey for South Stream gas pipeline project听will overcome many legal bottlenecks听of EU legislation and regulations, expert said.
"EU energy market rules forbid听energy producers from simultaneously owning transmission networks,"听Orestis Omran, a Brussels-based lawyer at the McKenna Long & Aldridge international law firm听told The Anadolu Agency in an recent interview.听
Russian state-owned gas company Gazprom was听both听the supplier听of gas and owner of the South Stream natural gas pipeline听to Bulgaria which ultimately would听reach the European markets.
In addition, EU had other听legal concerns in South Stream as well.听
"Bulgarian tax regime was more favorable for Gazprom violating prohibition of state aid EU rules," said Omran.
"Market access restrictions, such as intergovernmental agreements听favoring companies of a certain nationality over others, were not allowed by EU competition law," he added.听
- New route through Turkey
In early December, Russia听scrapped听the听South Stream听project, and听offered a new gas pipeline route via Black Sea to reach Turkey's northwestern Thrace region. At Turkish-Greek border a hub will also be constructed to transfer gas further in to European markets.
"Turkey is a not an EU member,听and its involvement in the new gas route takes听the relevant intergovernmental agreements, thus certain legal concerns out听of the picture," Omran said.听
Omran reminded that with Gazprom听being the supplier,听the听Greek gas operation network will be owned by another firm,听most probably the Azeri energy company Socar.听
If EU听Commission questions the legality of the new project, partial ownership of the onshore pipeline on Turkey by a domestic company can be an option, Omran stated.听
South Stream was also abandoned because it was very expensive, said Omran,听adding "The initial cost of around 16 billion Euros听skyrocketed to more than听50 billion Euros."听
"The cost of听a pipeline through Turkey is considerably less,听while听an important share of the gas flow will be sold to Turkey in good prices. This creates a win-win situation for everyone," he concluded.
By Ovunc Kutlu and E. Gurkan Abay
Anadolu Agency
ovunc.kutlu@aa.com.tr and gurkan.abay@aa.com.tr
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