Russia refused building 2nd branch of Yamal-Europe pipeline in Belarus

There is no sense in building the second branch of Yamal-Europe gas pipeline, Russia's Fuel and Energy Minister Viktor Khristenko told Thursday after a session of the government, while Prime Minister Viktor Zubkov promised to consider this idea last month, Reuters informs.

Belarusian government brought forward that project as an alternative to Nord Stream pipeline via the Baltic Sea. Gazprom plans to build it in cooperation with German companies. The Baltic states do not oppose this idea openly, but refer to ecologic restrictions and demand more thorough project preparation, while the new EU energy policy produced new problems for Gazprom.

Zubkov said that resources should be revised in studying the project of the second branch.

Belarus promises considerable benefits in gas transit for five years to Russia in case it agrees to build the second branch on Belarusian territory. The cost of the pipeline could amount to $2-3 billion according to Belarusian estimates.

The first 575 km branch of the pipeline was launched in the end of the 1990ies. Its capacity is 33 billion cubic metres a year, however gas deliveries to Europe via Belarus in 2006 amounted to 44 billion cubic metres. Except Yamal-Europe pipeline, Gazprom delivers gas to Europe via Beltransgaz concern. Gazprom has agreed to buy in Beltransgaz 50 per cent of shares.

The majority of Russian gas deliveries to Europe are carried out via Ukraine. European customers are alarmed by stability of import after disruption in 2006 caused by price dispute between Moscow and Kyiv, and considering the analogous disagreement between Moscow and Minsk which hadn’t ended in interruptions however.

Lukashenka similarly to the Baltic States criticized Russia and Germany’s plans to build the gas pipeline bypassing Belarus, but German Chancellor Angela Merkel has said that Nord Stream would be built in time and according t the plans.