Putin Abandoning South Stream Pipeline Brings Relief to Ukraine
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President Vladimir Putin’s decision to cancel the $45 billion South Stream gas pipeline project is a boost for Ukraine, where the faltering economy depends on the transit of Russian natural gas to Europe.
The 2,446-kilometer (1,520-mile) pipeline, designed to link Russia directly with the European Union through the Black Sea, would have deprived Ukraine of leverage against its bigger neighbor. Now, Russian gas export monopoly OAO Gazprom will still rely on Ukraine’s network to supply customers in Europe.