Sochihosted today a working meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Dusan Bajatovic, Director General of Srbijagas.

The parties addressed the prospects for closer interaction between Gazprom and Srbijagas in the area of Russian gas supply and underground gas storage as well as the potential for joint projects in the power generation sector.

In addition, the meeting discussed the progress with the South Stream project in Serbia. At present, design activities as well as spatial planning and environmental impact assessment (EIA) procedures required by the national laws are nearing completion.

The meeting resulted in the decision to accelerate the completion of design and survey activities in order to timely obtain building permits and start the construction process in December 2013.

Background

In 2012 Gazprom Group supplied Serbia with 1.9 billion cubic meters of natural gas.

Srbijagas is a state-owned company dealing with natural gas transmission, distribution and storage in Serbia.

With a view to diversify the natural gas export routes, Gazprom implements a project for the construction of a gas pipeline running under the Black Sea to Southern and Central Europe – the South Stream project. Intergovernmental agreements are signed with Bulgaria, Serbia, Hungary, Greece, Slovenia and Croatia in order to implement the onshore gas pipeline section.

In November 2009 South Stream Serbia AG joint project company was registered. Gazprom holds a 51 per cent stake in the company and Srbijagas – a 49 per cent stake.

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

In February 2013 the Skupstina (Parliament) of the Republic of Serbia adopted the Law on the Public Interest and the Special Expropriation and Permitting Procedures with regard to the South Stream Construction.

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