Putin: South Stream Important to Major European Customers

Russian President Vladimir Putin and Italian Prime Minister Mario Monti have both stressed the importance of the South Stream pipeline project, following a meeting between the two yesterday.

Following the meeting yesterday, President Putin told reporters that the project remained important to a number of major European countries and had support throughout the continent. 

"This is a common, multi-lateral European project in which the overwhelming majority of our largest gas customers in Europe is interested," Reuters reports the president as saying.  "I am certain that this project will be realised."  

Russia has a significant interest in the South Stream project through one of its major companies. Gazprom, the operator of the South Stream project, holds a 50 per cent stake in the pipeline.

Prime Minister Monti agreed with President Putin's assessment, saying the South Stream project was of utmost importance to Italy, especially given Italian explorer and producer Eni's 20 per cent stake in the project.

"I would like to note the highly important agreements and contracts signed between the Eni and Enel groups, both for cooperating at the bilateral level and for working locally," the Kremlin's government website reports him as saying. "In particular, I would also like to emphasise the importance of the ENI Group’s involvements with the South Stream project."

Earlier this week, President Putin's press office confirmed reports that construction would begin on the Serbian section of the pipeline by the end of this year. Additionally, the press office also said that a final investment decision (FID), previously expected to be taken early next year, would be taken by November 2013.

After the meeting with Prime Minister Monti yesterday, President Putin also said that he expected the South Stream project to be completed within two years, Reuters reports.