At the present time, one of the main sources of Europe’s gas supply is Russia. Since the beginning of 2009, we have experienced the disastrous consequences of a dispute between two companies that has led to reduced gas supplies and left millions of European citizens at risk. The reason for this is that Europe depends on Russia for almost 40% of its gas supply, and the main pipeline for this supply comes through Ukraine. This means that the countries being supplied are vulnerable to any international conflict that involves either one or both of these two countries.

Europe knows that it has to diversify its supply line, and it is therefore looking into alternatives to the current situation. Russia and other countries have decided to build three additional gas pipelines that will not pass through any former USSR state, to be known as the South Stream, the Nord Stream and Nabucco. The first two start in Russia, so they do not offer a real alternative to the current situation, and the third, Nabucco, though forming part of the diversification solution, still involves transit problems as it runs through countries in the Caucasus region.