Why would anyone need this “stream”?

“Turkish stream” — show-off instead of calculations

Initially it was a purely political project. The goal is to bring Ukraine to its knees, depriving her of the income from the transit of Russian gas to Europe. Commercial of “Turkish stream” — a monstrously unprofitable project. In 2018, Sberbank CIB analyst Alex FEK (dismissed, particularly for those estimates) estimated that the cost of the project is $20 billion, it will pay off in the next 50 years will bring “to Gazprom” $13 billion loss. That’s the price of politically motivated decisions.

Putin, Erdogan, the leaders of Serbia and Bulgaria has solemnly turn a symbolic valve, running the pipeline “Turkish stream”. Everyone is very happy.

But… Why and who needs this “flow”?

1) Initially it was a purely political project as “Nord stream”. The goal is to bring Ukraine to its knees, depriving her of the income from the transit of Russian gas to Europe. A matter of a few billion dollars a year. And for that steel to build a completely commercially profitable pipelines to bypass Ukraine. The result — the pipes are almost built, but to deprive Ukraine of transit failed — just signed a new 5-year contract, the terms of which virtually dictated that Ukraine… Mission not accomplished.

2) Commercial “Turkish stream” – a monstrously unprofitable project. In 2018, Sberbank CIB analyst Alex FEK (dismissed, particularly for those estimates) estimated that the cost of the project is $20 billion, it will pay off in the next 50 years will bring “to Gazprom” $13 billion loss. That’s the price of politically motivated decisions.

3) the First branch of the “Turkish stream” will go to Turkey. The second — in Europe. The main consumer — Italy — withdrew from the project. Left Serbia and Bulgaria. They still have not built your branch and the continuation of the pipeline. And it is unclear when and how to build, money to do so. And Gazprom, as gas supplier, has the right to invest in the pipe in Europe. So the second tube will come to Turkey and will be plugged indefinitely… a Wonderful business plan!

4) special mention is the idea of the second leg for Europe. Turkey refused to accept it. And Putin succeeded in persuading Erdogan, only giving a 10% discount on gas in the first tube broken… So the second branch does marginal supply for the first branch…

5) However one should not be reduced to merely a political decision. Commerce for laying pipes done. Not “Gazprom”. And its suppliers — more friends of Putin and his friends friends. They are perfectly “welded” in construction work and the manufacture of pipes.

Russia and the Russians “Turkish stream” is not exactly necessary. Any benefits he will not bring us. It spent huge amount of money. Our money. Which could be directed to the budget in the form of dividends. Or let them “Gazprom” to gasify the would be mother Russia, and not Turkey with Bulgaria. But no. This will not put himself “the coolest kid” in Europe, and friends earn is a lot harder, because everything rests in the limited solvent demand of Russians, which is to raise the Russian government also doesn’t intend…

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