Add to favorite
Subscribe to our Newsletters Subscribe to our Newsletters Get Daily Updates RSS

The South Stream Losses
December 9, 2014 17:21

The shut-down of the “South Stream” will cost foreign countries 3 billion euros.

The losses of foreign companies caused by the freezing of the “South Stream” project will make up at least 2.82 billion euros. The direct losses of European companies may equal 2.5 billion euros. Japanese companies will lose an order for 320 million euros. It was reported by TASS, referring to the materials of the company “South Stream Transport”.

In particular, the German “Europipe” was recognized a supplier of 50 percent of the order for the pipe for the first line of “South Stream” in the amount of 500 million euros. The Japanese consortium “Marubeni-Itochu and Sumitomo” received an order for 40 percent of the supply of pipes for the second line of the project. In March the company “South Stream Transport B.V.” concluded a contract for the installation of the first line of “South Stream” with the Italian “Saipem”, a subsidiary of the Italian “ENI” which acted as a contractor for pipe installation on the projects “Blue Stream” and “North Stream”. The contract value amounted to 2 billion euros. In April “South Stream Transport B.V.” signed contracts for the construction of the second line of the offshore pipeline section “South Stream” with the Swiss company “Allseas Group” - for the works on installation of deep-water gas pipeline, as well as with the Italian “Saipem” - for services on ensuring of the construction.

The contract price was not disclosed. Earlier, on December 2 the Head of the Austrian oil company “OMV”, one of the largest European partners of “Gazprom”, Gerhard Reuss told to Bloomberg that he was surprised by the decision of “South Stream”.

According to Reuss, the Russian holding did not consult OMV before the shut-down of the project. He also noted that gas should not be used as a political weapon. In March 2014 Austria officially returned to the project “South Stream” and expected that the first portion of gas would come through the pipeline to the country at the end of 2016. On December 1 the Russian President Vladimir Putin stated that under the current circumstances Russia would not implement the “South Stream” project. In his turn, the head of “Gazprom” Aleksei Miller noted that the project was no longer relevant.

The “South Stream” project worth 15.5 billion euros was intended for delivery of 67 billion cubic meters of gas per year to Europe. It had to go across the Black Sea to Southern and Central Europe. It was assumed that the gas transportation through it would begin in late 2015. It was planned to lay the route of the pipeline through the territory of Bulgaria, Serbia, Hungary, Austria, Italy and Slovenia. Macedonia also expressed the desire to participate in the project.

Author: Anna Dorozhkina

Tags: South Stream Sanctions Russia International   

Next Previous

You might also find interesting:

Russian MOFA Invited BBC To Make A New Film Research: Russian Entrepreneurs Notice Less Corruption "Young and Old have Suffered": Russian Business has Experienced the Strongest Drop in Profits Migration Policy 2012 Moscow Leads Russian Cyclist-Friendly Megacities

Comment on our site

RSS   twitter      submit

Tula Region  RFID  foul language in Russia  GUM Department Store  Remote Earth Sensing  Fyodor Sologub  Chelyabinsk meteorite  Vladimir  Russian academy of sciences  MICEX  FIFA World Cup   Russian economy  Arts and Crafts  Russian people  Kolomenskoye  Sergey Prokudin-Gorsky  SIlver Age of Russian Poetry  activity holidays  Semantron  Mercedes-Benz Fashion Week Russia  sport events  Multimedia Art Museum  Siberian cultural tourism forum  Rock Music  Islam in Russia  Russian science  Moscow  Exhibitions in Moscow  Russian business  shaman festival   Russian tourism  Russian education  Christmas markets  Russian parliament  Valery Grushin  Nobel Prize  Sergei Yursky  Adler  Lipetsk Region  Stalin's bunker  Street Art  Sochi Games   Exhibitions in Saint Petersburg  St. Petersburg  Gelendzhik  calendar  Russian scientists  Crimean referendum  Russian Cinema  Konstantin Batyushkov 

Travel Blogs
Top Traveling Sites