Russia and Serbia have signed agreement to build South Stream

The realization of the South Stream gas pipeline has entered a new phase after Moscow and Belgrade have signed an agreement, Gazprom-CEO Alexei Miller told to journalists according to the news service Voice of Russia.

Russia and Serbia have signed an agreement to build the pipeline and the compressor, Miller explained.

At a meeting with Russian President Vladimir Putin, the Prime Minister of Serbia Aleksandar Vučić underlined, that has was satisfied with the important South Stream contract.

The length of the Serb main part of the pipeline is 422 km, the sideline to Croatia has a length of 158 kilometers. The cost of the construction work is estimated to be 2.1 billion euros and the construction will take about two years. Serbian companies will perform a substantial part of the work.

Russia has credited the Serbian part of 49 percent in the construction project at a rate of 4.25 percent. The Serbian side do however expect to pay off the loan through transit revenues after the pipeline is put in operation.

Source: Russlands Stemme (Photo: Putin and Vučić, the Russian president’s press service)