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Pipeline Cements Russia’s Hold on Europe’s Gas Supply

Posted by Matt in January 19th, 2008

SOFIA, Bulgaria — Russia strengthened its grip on Europe’s energy supplies on Friday as it signed a major gas deal with Bulgaria that analysts said would further undermine the European Union’s attempts to diversify its energy sources.

Under the agreement, the $15 billion South Stream pipeline will be built under the Black Sea, allowing Russia to send natural gas directly to Europe through Bulgaria and bypassing Turkey, which has been a crucial transit route for Russia’s gas exports to European markets.

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