The European Union wants the project to diversify its supply routes away from Russia and to boost European energy security. However, Mr Mernier said it would be difficult to find investors for the project due to the high costs and enhanced risks as it was uncertain whether the problems in Iran and Iraq would be solved. In addition, he said that the Caspian Sea region has insufficient gas reserves to implement the Nabucco project. Nabucco, planned as an arm of the South Caucasus pipeline, is seen as a rival to the gas pipeline deal agreed by Russia, Turkmenistan and Kazakhstan, the region's major gas producers, in May. The three former Soviet allies agreed to build a pipeline along the Caspian Sea coast to export gas from Turkmenistan to Kazakhstan into Russia's existing network of pipelines running to Europe.