Russia drops the proposed South Stream gas pipeline plan and looks at creating a gas hub on the Turkish-Greek border, to supply Europe with gas.
Russian President Vladimir Putin announced this during his visit to Ankara Dec 1.
"If Europe does not want to carry out (South Stream), then it will not be carried out. We are now going to focus our energy resources in other directions"- he said.
The pipeline, funded by Russia's state gas giant Gazprom should have run under the Black Sea to southern and central Europe, providing another transit route for Gazprom.
Construction work on the 930km (580-mile) South Stream project began in Bulgaria in October 2013 but was suspended in June after the European Commission said it may be breaking EU competition rules.
Relations between Russia and the EU have been badly hit by the crisis in Ukraine.
The EU and the US have imposed sanctions on a number of Russian individuals and companies over Russia's role in Ukrainian crisis.