The Gazprom headquarters hosted today a working meeting between Alexey Miller, Chairman of the Company's Management Committee and Slavenko Terzic, Plenipotentiary Ambassador of the Republic of Serbia in the Russian Federation.

The parties addressed the status of the bilateral cooperation in the energy sector. Special emphasis was placed on preparation issues related to launching the construction of the South Stream gas pipeline in Serbia. It was noted that all necessary preliminary procedures were completed and the construction of the first section would start as soon as this month.

Background

South Stream is Gazprom's global infrastructure project aimed at constructing a gas pipeline with a capacity of 63 billion cubic meters across the Black Sea to Southern and Central Europe for the purpose of diversifying the natural gas export routes and eliminating transit risks.

South Stream Serbia AG, a joint project company focused on the South Stream implementation in Serbia was registered in November 2009 (Gazprom holds a 51 per cent stake in the company and Srbijagas – a 49 per cent stake).

The Banatski Dvor UGS facility located in Serbia was ceremonially put onstream in November 2011. Banatski Dvor, the first UGS facility within the South Stream project will secure reliable gas supplies via the South Stream gas pipeline.

In October 2012 the final investment decision was approved for the South Stream project in Serbia.

In February 2013 the Skupstina (Serbian Parliament) awarded South Stream in Serbia with the special status.

In March 2013 a long-term contract was signed for Russian natural gas supply to Serbia in the amount of up to 1.5 billion cubic meters of gas annually for a period of 10 years. Gas will be conveyed via the existing route and in the future – via the South Stream gas pipeline.

In 2012 Gazprom supplied Serbia with 1.5 billion cubic meters of natural gas.