Russia's state-owned gas giant Gazprom will resume the construction of its Southern Corridor Pochinki-Anapa pipeline four years after putting the project on hold, Interfax reported on Friday.
The Southern Corridor project aimed to transport Russian gas through the Black Sea via the South Stream pipeline, onto the Balkans and finally ending in Austria. But the South Stream pipeline was canceled in 2014 after Russia’s annexation of Crimea led to European sanctions on the country.
The Pochinki-Anapa pipeline constitutes the eastern route of the Southern Corridor project. It was shelved in 2015 after the South Stream pipeline’s cancellation and its subsequent replacement by Turkish Stream, which halved the project’s capacity from 63 billion cubic meters to 31.5 billion cubic meters.
The Southern Corridor consists of two segments: Pisarevka-Anapa (472 kilometers), which has already been built; and Pochinki-Anapa (1,625 kilometers), more than 500 kilometers of which has been built so far.
It’s possible that Gazprom’s decision to go ahead with the construction came from a desire to create a reserve for the future, former Fitch director Dmitry Marinchenko and Raiffeisenbank analyst Andrey Polischuk told the Vedomosti business daily.
The total cost of the Southern Corridor has been estimated at 715 billion rubles ($22.4 billion) based on 2012 prices, Vedomosti reported.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
