Gazprom Declares Termination of South Stream Agreement

Gazprom announced on Wednesday that the agreement on the planned South Stream natural gas pipeline has been terminated.

The board of directors of the company approved the agreements concluded by Gazprom and South Stream B.V. on termination of the contract of suretyship regarding obligations of Gazprom Export on the gas transportation agreement from 2 October 2013.

South Stream B.V. agreed to free the Russian energy giant from fulfilling all obligations on the contract of suretyship regarding the obligations stemming from the 2013 agreement and to dissolve the contract, TASS news agency informs.

In the beginning of the year, media reports suggested that a renewal of the pipeline is possible.

However both Bulgarian and Russian authorities dismissed such rumours, saying that the project remains halted.

In December 2014, Russian President Vladimir Putin declared the cancellation of the project and its replacement with Turkish Stream pipeline.