Russian Crisis

Pipe Dream Goes Dry

Achimov justin jim for wintershall dpa
The mood has cooled in western Siberia.
  • Why it matters

    Why it matters

    • The end of the South Stream pipeline could lead to higher energy costs in Germany and other European countries.
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  • Facts

    Facts

    • The €40 billion, or $50 billion, South Stream pipeline was to transport gas across the Black Sea to Europe.
    • In mid-December, an asset swap Gazprom and BASF was canceled.
    • The planned Trans-Adriatic Pipeline will bring natural gas from the Caspian Sea to Italy via Greece and Albania as of 2018.
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    Audio

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German chemical company BASF said on Monday that Wintershall, its oil and gas subsidiary, sold its 15 percent share in the pipeline project, ending the group’s plans to help transport natural gas to Europe.

BASF did not reveal the sum it received, confirming only that the price corresponded to its investments in the project. Industry insiders believe the amount to be in the low three-digit millions of euros.

It is the latest move in a series of cancellations of deals between Russian and German firms that reflects the hardening fronts in the Ukraine crisis.

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