Putin raises concerns over Nord Stream

MOSCOW, Nov. 13 (UPI) -- Russian gas shipments to Europe will be more expensive unless political capital is expended in support of the Nord Stream pipeline, the prime minister said.

Russian Prime Minister Vladimir Putin said at a meeting with his Finnish counterpart, Matti Vanhanen, in Moscow that the Nord Stream pipeline to Germany was in jeopardy without the support of Europe, The Wall Street Journal reported Thursday.

"Europe must decide whether it needs this pipeline or not," Putin said. "If you don't, we will build liquefaction plants and send gas to world markets, including to European markets. But it will be simply more expensive for you."

Gazprom, the Russian gas monopoly, and Germany's E.ON finalized a deal in October for supplies for the planned gas pipeline under the Baltic Sea. Nord Stream AG, the pipeline consortium, followed with a statement saying the pipeline was a "priority project" for the region.

German energy spokesman Joachim Pfeiffer, however, said Berlin still backs the project, but "we won't insist on the Nord Stream project if it doesn't make business sense."

The steep decline in world crude prices, below $55 on the New York Mercantile Exchange Thursday, has put financing for the $9 billion pipeline in jeopardy, analysts say. In addition, Europe has raised questions over the environmental impact of the project.