What should Azerbaijan expect from Europe-Russia gas war?

What should Azerbaijan expect from Europe-Russia gas war?

Baku, Azerbaijan, Jan.15
By Seymur Aliyev - Trend:

Difficult political situation and the need to accelerate the term of implementation of the projects made the players of the European gas market intensify their efforts, and in fact opened a new stage of confrontation between them.

We're currently not speaking about Azerbaijani gas, the delivery project of which goes as scheduled. This is facilitated by the fact that the choice of routes and contractors, negotiations with the EU, preparation of documents has been completed a long time ago.
Today, the players that understood the effectiveness of the southern direction of gas supplies to Europe, previously selected by Azerbaijan, have become active. And not just arguments are used, but basically ultimatums.

On Jan.14, a meeting of the head of Gazprom Alexey Miller with the vice-president of the European Commission for Energy Union Maros Sefcovic took place. At this meeting, Miller in the form of ultimatum actually stated about the only route of Russian gas supply to Europe through Turkey, due to the difficult situation in Ukraine.

Miller said that the Turkish Stream pipeline is the only route, by which 63 billion cubic meters of Russian gas can be delivered, which go en route through Ukraine for now, according to RIA Novosti news agency.

"There are no other options," the head of Gazprom said. "Our European partners are informed about it and now their task is to create the necessary gas transportation infrastructure from the border of Turkey and Greece."

That means, today, Moscow actually puts before Europe a task on creation of an infrastructure necessary for the supplies of Russian gas.

Sefcovic himself has already parried this statement, who characterized the proposal of Miller for the supply of Russian gas through Turkey as the one which strikes a blow to the image of Gazprom as a reliable supplier.

That is, in fact, this round of talks on Russian gas supplies to Europe can be called a failed one. How can this be explained?

First, Europe and Russia still have a number of, thus frar, irresistible contradictions. Brussels can not refuse from supporting Ukraine - something it will have to do if it accepts Gazprom's proposal.
Second, today, gas is actually one of the most effective pressure tools of Moscow's on Europe. However, both sides understand simple truth: Russia has gas and Europe wants to buy it.
What currently goes on is bargaining for better terms. EU vice president confirms this, saying that the option of gas supply via Turkey will unlikely to work. But the EU is ready to consider Russia's proposal to supply 50-60 billion cubic meters of gas through the new pipeline.

What will Azerbaijan get in this case? First of all, this can affect the cost of gas. Of course, the long-term gas supply contracts and "take or pay" conditions significantly reduce the risk of competition on certain markets.

However, the expansion of gas supply in the long term through increasing of the production volumes in Azerbaijan or joining of the manufacturers from the eastern coast of the Caspian Sea to the Southern Gas Corridor, may have problems with oversaturation of the market in Southern and Eastern Europe.

Bulgaria's recent proposals for the construction of a gas hub in this country to provide all the regional countries, namely, Serbia, Macedonia, Greece, Croatia, Slovenia, Austria and Hungary with fuel, testify to this.

The hub construction project has been already worked out, Bulgarian Prime Minister Boyko Borisov said. If Russia is interested in it, Bulgaria is ready to start negotiating.

Today it is unequivocally clear that Azerbaijan is beyond competition in the beginning of supplies to the European market. However, tough competition can be observed on the European market in the long term. It is necessary to prepare for it now.

Seymur Aliyev is the head of Trend Agency's Russian News Service

Azercell’s digital solutions now on IBA Mobile app!
Azercell’s digital solutions now on IBA Mobile app!
UNEC hosts international conference on "Azerbaijan's Albanian Christian heritage - Khudaveng monastery” (PHOTO)
UNEC hosts international conference on "Azerbaijan's Albanian Christian heritage - Khudaveng monastery” (PHOTO)
India’s role in combating COVID-19 through vaccine development and manufacturing
India’s role in combating COVID-19 through vaccine development and manufacturing
Loading Bars
Italy decreases import of petroleum oils from Kazakhstan amid COVID-19
EU demands AstraZeneca plan to break vaccine deadlock
Tesla profit, foggy outlook on 2021 deliveries disappoint Wall Street
Inflation converges to targeted value at end of 2020 in Georgia
Chile approves emergency use of Oxford-AstraZeneca COVID-19 vaccine
UK PM Johnson heads to Scotland amid fears of break up of UK
Europe lifts safety ban on Boeing 737 MAX jet
Mexico's richest man Carlos Slim hospitalized with COVID-19
Biden administration temporarily holds some U.S. weapons exports
Kazakhstan boosts exports to Uzbekistan despite COVID-19
Footage of cemetery destroyed by the Armenians in Azerbaijani village of Saray, Gubadly region (PHOTO)
President Aliyev congratulates re-elected President of Portugal
Turkey registers more than 7 400 new coronavirus cases
Russian bank in talks with Iran to boost currency exchanges
Dressing rooms to work, exchange of goods to be allowed in shopping malls starting February 1
EBRD to oversee more SMEs support programs in Kazakhstan in 2021
Trade, economic and investment cooperation between Kazakhstan and Ecuador expanding
German gov't lowers economic forecast for 2021 to 3 pct
Azerbaijan-Turkmenistan MoU boosts relevancy of Trans-Caspian gas pipeline
Armenia’s Metsamor nuclear plant poses potential threat to region – ombudsman
Azerbaijan eliminating damage caused by Armenia in Fuzuli, Aghdam – Trend TV
Azerbaijani State Oil Company to enter new stage of development - minister
Meeting of trilateral group on Nagorno-Karabakh region may be held soon - Russian MFA
Azerbaijan restoring houses destroyed as a result of Armenia’s aggression in Ganja (PHOTO)
Liberating Azerbaijani territories formed new regional reality - Turkish Security Council
Azerbaijan releases footage of Fuzuli district's Khalafsha village (PHOTOVIDEO)
Azerbaijan electricity provider opens tender to attract various services
Depreciation of Georgian REER associates with domestic export goods gaining competitiveness
Kazakhstan's entrepreneurship dev't fund to unite efforts with WB in SMEs support
Work on increasing level of drinking water supply to Uzbek regions continues
Coty to consolidate fragrance manufacturing operations, close Cologne factory
US companies ready to take part in restoration of Azerbaijan's liberated lands (PHOTO)
Кazakh Electricity Grid Operating Company to opens tenders buy spares for vehicles
Turkish low-cost airline eyes to link countries of religious tourism with Uzbekistan
Eurasian Development Bank setting up top priorities for this year’s strategic period
Georgia sees recovery in remittance inflows
National Bank of Georgia sells funds at foreign exchange auction to stabilize lari
EBRD continues supporting SMEs dev't in Kazakhstan
Kazakhstan reports increase in trade with Denmark
Azerbaijani Foreign Ministry grateful to Turkish side
Iran’s Bahar Azadi gold coin rebounds in price
Azerbaijani government's digitalization to favor creation of various projects
Volume of cargo loaded, unloaded in Iran’s Khorramshahr port announced
Iran to launch new projects in tourism, power industry, agriculture fields
Trilateral statement on Karabakh being implemented consistently - Putin
Georgia sees slight increase in export of precious metals - ISET-PI
Contribution to GDP structure of Turkmenistan’s industrial sector revealed
SOCAR Turkey, Middle East Technical University to carry out chemical recycling of plastic waste
Housing prices in Baku decrease
Georgia presents great investment opportunities - Spanish Foreign Ministry
Azerbaijani FM, OSCE MG co-chair from France exchange views on situation in region
JPMorgan to launch UK consumer bank within months
Iranian banks issue big loans to agricultural sector
Azerbaijan liberated its lands from occupation and new opportunities opened up - assistant to president
State Property Service of Azerbaijan to auction small enterprises
Azerbaijan confirms 601 more COVID-19 recoveries
Azerbaijan benefited from cooperation with Turkey in Patriotic War - President's assistant
Houses destroyed by Armenia in Azerbaijan's Tartar being restored - Trend TV reports
Turkmenistan’s Turkmennebit SC names amount of work performed at trust
Iran, Kazakhstan should form join bank to boost trade, transactions - ambassador
Russia remains main exporter of Uzbek textile production
Relationship between Azerbaijan and Turkey - eternal - Azerbaijani president's aide
Uzbekistan’s Statistics Committee, IMF discuss national strategy for statistics dev’t
Demand for Azerbaijani CBA's short-term notes exceeds supply fourfold
Boeing 737 MAX safe to return to service in Europe
Spending on gas exploration declined in 2020
UK voices interest in restoring electric energy sector in Azerbaijan's liberated areas
Armenians built several villas for themselves in Shusha. One of villas belongs to leader of junta, another - to wealthy, corrupt official - President Aliyev
Shuakhevi HPP to play important role in decreasing Georgia’s dependence on imported electricity
Iran would return to JCPOA commitments if others comply - Iranian President
Significant volume of bank loans in Georgia secured with real estate
Georgian JSA Technologies plans to export the product to EU, US and China
Total assets of Azerbaijani banks for 2020 revealed
Azerbaijani banks' reduced total liabilities in 2020
All of us, all people will revive Shusha - President of Azerbaijan
Shusha was our goal and Shusha became our victory - President of Azerbaijan
I said that our victory would be incomplete without Shusha, at that time, during war, I could not say more - President Aliyev
Uzbek-Korean JV to buy spare parts for steam boilers via tender
President Aliyev gives instructions in relation to restoration of Shusha city
FMs of Azerbaijan, Turkey hold phone conversation
We don't need fake history - President of Azerbaijan
They say that Shusha was allegedly handed over just like that, without a fight, that Armenians left Shusha of their own free will. This is a blatant lie - President Aliyev
Russia lifts restrictions on import of Kazakh tomatoes - Kazakhstan's Agriculture Ministry
At that time, minister of defense of Azerbaijan was offshoot of PFPA-Musavat tandem, one of their henchmen. He was first to sell Shusha - President Aliyev
During Shusha operation, hundreds of invaders were killed - President Aliyev
Turkmenistan launches initiative to ensure stable international transport services
Russia’s Tatneft in Turkmenistan opens tender for maintenance
Turkmenistan, Belarus sign co-op program between foreign ministries
Iran reveals COVID-19 data for January 27
If Armenians considered Shusha their own, then why didn’t they create anything there in 28 years? - President of Azerbaijan
Iran’s CBI reveals amount of loans issued by Iranian banks
Shusha was able to preserve spirit of Azerbaijan despite attempts to Armenianize it - President Aliyev
Domestic production increases in Iran
Number of vehicle re-export from Georgia down
Goldman Sachs loses legal fight against EU cartel fine
President Aliyev receives in video format Aydin Karimov on his appointment as Special Representative of President in Shusha district (PHOTO)
Iran's government voices support for local stock exchange
Iran boosts its exports via Kurdistan Province
EU and FAO work together to increase farm productivity across Georgia
Foreign, local investors showing more interest in Azerbaijan's electric power engineering
All news