Russia failed to punish Ukraine with either Northern or Turkish Stream, expert claims

Mikhail Krutikhin, an economist, told Belsat about how much Moscow’s desire to build a gas pipeline to Europe bypassing Ukraine cost the taxpayers.

According to Russian economic analyst and expert of oil and gas market Mikhail Krutikhin, Russia lost from the construction of both gas “streams” — “Turkish” and “Northern”.

“Gazprom and Russia are losing out. Such projects benefit a small circle of people who, by order of the Russian leadership, have been appointed as contractors building these gas transmission corridors,” said Mikhail Krutikhin.

According to the expert, the idea of building both “streams” was politically expedient: to punish Ukraine by depriving it of income from gas transit – about two billion euros a year. According to Krutikhin’s estimates, Russia spent $80 billion on both projects, but failed to punish Ukraine.

“In the end, we had to sign a transit agreement with Ukraine and much of the gas will still go through Ukrainian territory. Cake is not worth the candle. Both Northern Turkish Streams were empty political whims, for which Russian taxpayers eventually had to pay,” Krutikhin said.

“If we add up the cost of the submarine section of Turkish Stream passing through the Black Sea and the cost of the gas transportation corridor from the Yamal peninsula to the Black Sea, we have a very modest estimate of 56 billion dollars. It will never be possible to justify such a pipeline, transporting only 13 billion cubic meters of gas to Greece (it is not clear whether the second line will be able to work, transporting the same amount of gas): there are no commercial considerations here,” concludes the expert.