Russia may shelf South Stream if the EU isn't going to minimize its supply risks, according to a high-profile government official.

      If the European Commission blocks the project, the EU will be responsible for the risks related to gas transit, he added.

      He obviously referred to Ukraine, which has been a sticking point in ensuring uninterrupted supplies in the past.

      The South Stream project is aimed at strengthening the European energy security. It is the key project in the diversification strategy for gas supply routes to the EU. The South Stream gas pipeline will ensure a direct connection between hydrocarbons suppliers and consumers thus raising significantly the energy supply security on the entire European continent.

      Experts share the opinion that in the medium and long term gas demand will grow in the European Union. The countries which used to consume moderate amounts of gas for industrial purposes are likely to guide their economies towards its increased utilization, since coal, fuel oil and nuclear power are less environmentally-friendly if compared to natural gas. Regardless that indigenous production still satisfies the bulk of consumption in Europe today, it will steadily decrease in time. Europe will need more imported gas and, accordingly, new transmission capacities.

      According to the consensus forecast by the world’s leading forecast centers, Europe’s annual demand for additional gas import may reach 80 billion cubic meters by 2020 and surpass 140 billion cubic meters by 2030.