Russia Signs Deal With Austria To Circumvent Ukraine

Top Austrian and Russian energy conglomerates have signed an agreement expressing their commitment to building the Austrian section of a pipeline to supply Europe with natural gas while circumventing Ukraine.

The memorandum on Russia’s “South Stream” pipeline was signed Tuesday by Gerhard Roiss of Austria’s OMV and Gazprom chief Alexei Miller.

South Stream has become increasingly important to Austria and other European countries after European energy companies gave up last year on building a different pipeline to make the continent less dependent on Moscow by bringing in gas from central Asia.

The 50-kilometer (30-mile) Austrian part of the South Stream pipeline is slated for completion by 2017

It will traverse the Black Sea, Serbia and Hungary. Some gas will be distributed from Austria to other European countries.

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza