Courtesy of reuters.com

President Vladimir Putin on Monday unexpectedly announced Russia was shelving the multi-billion dollar South Stream pipeline project to deliver Russian gas to the Europe, blaming the EU for throwing obstacles in its path. Putin revealed on a visit to Ankara that Russia was drawing the curtain on what for half-a-decade has been one of the Kremlin's flagship projects, saying Turkey in the future could play an important role as a gas hub.

The Russian leader – whose relations with Europe have nosedived over the Ukraine crisis – warned the European Union now risked receiving less Russian gas and Moscow would look to new markets.

He said construction of the pipeline was not possible as the European Commission had forced Bulgaria to stop work under its territorial waters.

"Taking account of the fact that until now we have not received permission from Bulgaria, we believe that in the current conditions Russia cannot continue with the realisation of this project," Putin said at a news conference alongside Turkish President Recep Tayyip Erdogan in Ankara.

The chief executive of state Russian gas giant Gazprom Alexei Miller was quoted as saying by Russian news agencies: "That's it, the project is closed."

Source: afp.com