Turkish Stream operator loses right to purchase European pipes

The company promised to continue supplying gas, counting onthat an exception will be made for Turkish Stream

Turkish Stream operator South Stream Transport BV announced the early revocation of the EXPORT license for pipes.

“As a result of the imposition of new sanctions on September 18, 2022, the export license of South Stream Transport BV, the operator of the Turkish Stream offshore gas pipeline, through which Russian gas is transported through the Black Sea to consumers in Turkey and European countries, was prematurely revoked,” the report says. companies. The reason is the ban on the supply of goods and the provision of services, including technical assistance and maintenance of the pipeline in the exclusive economic zone and on the continental shelf of RUSSIA.

"Unprecedented destruction" of Nord Streams. What is important to know Business

South Stream Transport BV indicates that the sanctions do not limit the continuation of gas transportation, and therefore industries and households in Turkey and European countries will not be affected. In addition, the company applied for the renewal of the export license. They expect that participation in ensuring the energy security of Europe will make it possible to make an exception from the current sanctions regulation. The operator notes that the gas coming through the Turkish Stream is involved in ensuring the energy security of Europe.

The EU has banned the export or provision of pipes (from the Annex II list) for use by Russia. A source in Gazprom confirmed to RBC that the sanctions do not apply to gas exports.

After the damage to the Nord Stream, the Turkish Stream is one of the two remaining gas transmission systems through which gas enters Europe. The design capacity of the pipeline is 31.5 billion cubic meters. m of gas per year (15.75 billion cubic meters for each of the two lines).

Sanctions against Russia, which the EU began to impose after the start of the military operation in Ukraine, provide for exceptions in the form of previously concluded contracts for a number of cases. For example, until September 17, deliveries to Russia of certain equipment for the oil and gas industry were possible under contracts signed before March 16. This list includes pipes, drilling tools, reciprocating positive displacement pumps, liquid lifters, tunneling machines, auto-drilling, floating drilling platforms, floating cranes.

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In June, the European Commission changed the exceptions provided under the sanctions for the execution of contracts with Russia. It follows from them that framework agreements cannot be considered as valid contracts, and contract extensions also cannot claim to be considered an exception in the form of a valid contract.

In June, against the backdrop of a reduction in gas supplies to Europe via Nord Stream 1, pumping through the Turkish Stream was stopped for a week due to preventive measures. Nord Stream was completely shut down in September. Gas leaks were recorded on two gas pipelines of this system, and Swedish and Danish seismologists reported explosions in this area. The pipelines have suffered "unprecedented destruction", Western countries and the Russian side claim that sabotage led to this.