MOSCOW, Dec. 28 (UPI) -- The construction of the South Stream natural gas pipeline for Europe depends on the status of negotiations with Ukraine, a Gazprom official said.
A 2009 contract dispute between Ukrainian officials and Gazprom exposed vulnerabilities in the European natural gas market when the Russian company briefly halted deliveries through Ukraine. Europe gets about 20 percent of its natural gas from Russia though 80 percent of that runs through transit systems in Ukraine.
Moscow aims to allay energy security concerns through its Nord Stream gas pipeline through the Baltic Sea and the planned South Stream project for southern Europe.
Gazprom chief Alexei Miller said construction on South Stream depends on the status of negotiations with Ukraine, the Interfax news agency reports.
Kiev is pressing for a better gas deal from Russia, though Gazprom said it's unlikely any breakthroughs would develop before year's end.
"South Stream was always tied to Ukraine," said Miller.
The news agency notes the combined capacity of Nord Stream and South Stream is equal to the amount of gas that Gazprom transports through Ukraine.
Gazprom in a Dec. 20 statement said South Stream construction timelines were unchanged. The pipeline could launch as early as 2015.
