Standart News: Russia, Serbia sign USD 2.9bn South Stream deal and the Italian presidency is in favour of the pipeline

A contract on constructing a gas pipeline for the South Stream project in Serbia worth 2.1 billion euros ($2.9 billion) has been signed in Belgrade last Tuesday. Another favourable development for the project is that the Italian EU presidency is in favour of the pipeline.

"We think South Stream should go ahead, as it would improve the diversification of gas routes to Europe," Italy's state secretary for EU affairs Sandro Gozi said on Thursday (10 July) during a press event in Brussels. He echoed statements made by Italian foreign minister Federica Mogherini who visited Moscow on Wednesday and met with her Russian counterpart. She said the pipeline was "very important for the energy security of our country, as well as that of the entire European area", but stressed that the project should comply with EU law.

The Serbian contract was inked by co-director of South Stream Serbia and Srbijagas CEO Dusan Bajatovic, a deputy head of department on Gazprom projects management, Aleksander Syromyatin, and Centrgaz CEO Stanislav Anikeev.The first gas supplies through the Serbian section of the pipeline are due to begin before the end of 2016.
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