Proposed EU pipeline to cut out Russia

Hungarian oil and gas company MOL has called for the merger of at least eight gas transmission companies in central and south-eastern Europe. The new firm would be called the New European Transmission System.

The European Commission has already backed the initiative.

The integrated company top priority would be to get a loan to build the Nabucco gas pipeline bypassing Russia.

Analysts say the proposal for a united pipeline company would be beneficial for European gas consumers.

BrokerCreditService's Maksim Shein says the move is a response to Gazprom's step towards “coordinating gas supplies as well as pricing.”

“It is logical for gas consumers to set up a two-sided consortium: one major producer and gas exporter like Russia, with other major gas exporting countries, and one major consumer, a united European organization,” Shein said.