The President of Kazakhstan is in Moscow to sign an agreement on the construction of a planned Caspian gas pipeline. Nelli Sharushkina from the Energy Intelligence Group shed some light on the political consequences of the deal.
“Russia receives additional volumes which could also support its contracts with the European customers. They have growing concerns that Gazprom does not invest enough in the development of its own reserves. This might basically reflect on its contracts with the European market. So, those who have been concerned right now can relax because Gazprom receives significant volumes of Turkmenistan gas which can also guarantee supplies to Europe. As far as Kazakhstan is concerned, it will earn on the transit fees as the pipeline is going to go through its territory. I think that the agreement being signed today is a victory for Russia in a strong competition for energy resources in Central Asia,” said Nelli Sharushkina.