The construction of South Stream is economically disadvantageous for both Ukraine and Russia, Prime Minister of Ukraine Mykola Azarov said at the conference "Ukraine-EU-what's the future?" in the European parliament. According to the PM, Russia has to spend 50 billion euro for the construction of South Stream, while the modernization of Ukrainian gas transportation system costs 1.5 billion euro.

"There are three gas pipelines passing via territory of Ukraine, which have the capacity to deliver 150 billion cu m of gas to Europe. And after the modernization of our GTS, which costs 1.5 billion euro, we will be able to deliver 200 billion cu m of gas and to cover all gas needs of Europe.
Nevertheless Russia plans to build South Stream and fully refuse our transit service, while Ukraine has to get rid of gas supplies from Russia, replacing it with alternative sources. Isn't it an absurd situation, especially under unstable conditions on world markets?" Azarov said.

The PM underlined that the means Ukraine overpays for Russian gas and the means Russia will spend for the construction could be spent for other, more important, social issues.

"Under the unstable conditions on world financial markets it would be better to spend the means at modernization of our industry and holding structural reforms. Russia in its turn also has problems, which could be solved at the expense of the means now aimed at the construction of the South Stream. We really hope for mutually beneficial cooperation with Russia," Azarov summed up.


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