Construction of Serbian leg of South Stream starts in July

BELGRADE - The construction of the South Stream gas pipeline section through Serbia could begin in July, head of the Gazprom international projects department Alexander Siromyatin said on Thursday.

The contractors will be hired in three weeks at the earliest, while a contract on a loan From Gazprom to Srbijagas for the construction of the pipeline section should be signed in the next two weeks, he pointed out.

Siromyatin told reporters at a conference on Serbia's role in the Balkan energy market held at the Serbian Chamber of Commerce he expected the construction to begin un July.

There are ongoing talks about the loan from Gazprom to Srbijagas, and the interest rate will be lower than that on the market, he noted.

There are few companies that would grant a loan with a 4 percent interest, he remarked.

Commenting on the affect of the Ukrainian crisis on the pipeline project, he said the project was going according to a dynamic plan, and that the crisis in Ukraine had only shown that it had been the right choice to start the South Stream project.

When asked if the EU could stop the project, he responded that the European Commission should first present their objections along with their arguments against the project.

There are ongoing talks with the EU on the application of the Third Energy Package on South Stream , Siromyatin stated, stressing that he hoped the issue would be resolved.

Commenting on the recent statement by Russian President Vladimir Putin that South Stream could be revised if the EU continues to pressure the countries taking part in the project, Siromyatin says that depending on the situation, the path of the pipeline can be altered.

Photo...