Russia's South Stream pipeline falls victim to Ukraine crisis, energy rout

Russia's President Vladimir Putin (L) is pictured during a joint news conference with his Turkish counterpart Tayyip Erdogan in Ankara December 1, 2014. REUTERS/Mikhail Klimentyev/RIA Novosti/Kremlin

SINGAPORE/LONDON (Reuters) - Russia's $40 billion (£25.4 billion) South Stream gas pipeline project has fallen victim to plunging energy prices, stalling European demand and the political standoff between the European Union and Moscow over the crisis in Ukraine.

Russia on Monday said it had scrapped the project to supply gas to Europe without crossing Ukraine, citing EU objections, and named Turkey as its preferred partner.