The Southern Stream gas pipeling will avoid transit through Ukraine

Russia is pushing for construction to begin on the “Southern Stream” gas pipeline, which will avoid Ukraine entirely by going under the Black Sea to Bulgaria.  The already completed Northern Stream has reduced Russia’s reliance on Ukraine by 50% in supplying Europe, and the Southern Stream will allow Russia to completely cut off Ukraine and still provide gas to Europe.  The European Commission is opposing the pipeline on “monopoly” grounds. 

The pipeline will almost certainly go ahead. Russia is prepared to finance it 100% on spec if EU opposition prevents bank financing.  Bulgaria, Serbia and other states are in favor.  Italy will build the undersea section and the Germans are manufacturing the pipes.