'"Economic Brief: The Blue Stream Gas Pipeline'"

On November 17, the Blue Stream gas pipeline between Turkey and Russia was officially inaugurated. Its construction, undertaken by Russia, Turkey and Italy -- involving a joint venture between Russia's gas giant Gazprom and Italy's energy major ENI -- began in 1997. At that time, it was sharply criticized as technically flawed (it runs at a record depth of 2,150 meters below the sea) and politically inopportune (since it was said to dangerously increase Turkey's dependence on Russia's gas supply).

Blue Stream's implementation confirms that Russia is using its vast oil and gas reserves as a geopolitical wildcard. For instance, on Blue Stream's inauguration day, Russian President Vladimir Putin already proposed the construction of new Russian-Turkish oil and gas pipelines.

Additionally, the success of Blue Stream highlights once again the major economic and strategic stakes of the broad area linking the southeastern Balkans, the Black Sea region and the Caspian Sea. Russia, Turkey, the E.U. powers and the U.S. are all involved in a complex geoeconomic competition.