Russian gas company Gazprom decided to cancel the agreement signed with Italian company Saipem for the construction of the first part of a gas pipeline in Turkey, according to statements made by Russian Energy Minister Alexander Novak.
The South Stream Natural Gas pipeline project cancellation was announced during a BRICS meeting in Ufa, Russia. At the same time, it was stressed that the fate of the pipeline does not depend on the cancellation of that particular contract, as the participants in the pipeline construction have not decided when the construction process will begin.
The contract cancellation came into effect after Gazprom and Saipem expressed different views on economic and business issues for the first pipeline construction phase.
The pipeline will transport natural gas from Russia under the Black Sea in northwestern Turkey, Greece and then further to European markets.