Sergey Kondratiev, Deputy Head of the Economic Department of the Institute for Energy and Finance, commented to the internet portal Vzglyad on the creation of a gas hub in Turkey.
Russia has come up with an idea that could radically affect the economic landscape across Europe. We are talking about the creation of a gas hub in Turkey - a system for the distribution and further resale of Russian gas. If implemented, the project will bring huge benefits to one group of countries, while the other group will count big losses.
Russian gas will come to Turkey, presumably, through two new branches of the Turkish Stream with a total volume of 55 billion cubic meters.
“We have seen this both in Ukraine and in Germany. A country that is a major buyer and transit country usually receives supplies from Gazprom on very attractive terms. Therefore, Turkey in the coming years will be a country with one of the lowest gas prices in Europe,” the expert is sure.
Those countries that buy Russian gas through the new Turkish Stream pipes will also benefit. First of all, these are the Balkan countries and the countries of Central and Southern Europe. Key stakeholders, according to Kondratiev, are Hungary, Austria and Italy as the larger buyers. Greece, Bulgaria, Serbia and even Slovakia can also rely on this gas.
In other words, Turkey and the countries of Southern Europe will be able to get cheap fuel, which can become the basis for an economic breakthrough, raising industry and living standards. And in the north of Europe the situation will be difficult.
“In recent years, we have seen that the Balkan countries and the countries of Southern Europe paid more for gas than North-West Europe. Now the situation can change to a diametrically opposite one,” Kondratiev suggests.
“In North-Western Europe, there could indeed be a decline in the standard of living. Energy-intensive industries will suffer the most - these are non-ferrous and ferrous metallurgy, and enterprises that produce equipment for these industries. And pharmaceutical and mechanical engineering enterprises, for example, will face a decrease in turnover and stagnation, but this will be a long process,” the source says.
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