At any price: Russia is embarking on the construction of South Stream. OSW Commentary No. 98, 2012-12-07

Gazprom is determined to continue its efforts to build the South Stream gas pipeline regardless of the slump on the European gas market and the fact that there is sufficient capacity already in the existing transport infrastructure. The official inauguration of the maritime section of South Stream was held on 7 December this year, but the construction itself will commence in 2014. The agreements concluded so far, both intergovernmental and between corporations, are necessary for the launch of the construction of the new pipeline, but still do not guarantee that the project will be completed on time. First of all, some legal problems have yet to be resolved, such as the evaluation of the compliance of the planned actions with the ‘third energy package’ or the fact that ecological surveys required under European law need to be carried out. Secondly, given the present situation on the European gas market and medium-term forecasts, the high cost of implementation of this project and the maintenance expenses of existing pipelines – which are not being used to full capacity – the new project seems to be unfeasible. However, Gazprom’s determination in its efforts to build the pipeline proves that Russia is ready to take a high economic risk to maintain its dominant position on the European gas supply market; it will restrict the possibilities of alternative infrastructural projects being implemented (above all, the EU’s Southern Corridor) and use the construction of new pipelines as an instrument of political pressure on the present transit countries (especially Ukraine).

The European Construction - from Communities to a Genuine Supranational Union

The European Union is an entity having a unique way of construction. All started as a need to put the coal and steel resources together in order to avoid a new army conflict on the old continent and as a way to rebuild the European economies after the World War Two. The success of these strategies and policies but also the newly realities that appeared at the European and global level, encouraged the European leaders to dare for more. Hopefully, more and more European states embraced the idea of integration, thanks to all the advantages brought by the membership. Hence, new premises were created and the decision makers took advantage of them and used the treaties as mechanisms for a safe and stable development. Using the observation and the qualitative method by analyzing several researches on this topic and the reforms introduced through the treaties, we will finally be able to validate our research hypothesis that we can speak nowadays about a real union having its own identity, a union which has moved from an intergovernmental organization to a supranational one.