Deliveries of pipes for the "South Stream" project have stopped. This was reported by the South Stream Transportation company, by sending a notice of termination of supplies to "South Stream" to all of the pipe-supplying companies that participated in the project.
Earlier this month, during negotiations in Turkey, Russian President Vladimir Putin said that Russia cannot continue to implement "South Stream" in the current environmental circumstances (including the non-constructive position of the European Union). At the same time, Putin said that, to meet Turkish needs, the Russian Federation will build a new gas pipeline system. Later, the head of "Gazprom" Alexei Miller confirmed that the "South Stream" project is closed.
At the beginning of December, South Stream just delayed sending the pipelaying vessel "Castoro Sei" from a contract with "Saipem". Now, according to a source close to one of the pipe companies that participated in the project, South Stream has frozen all the orders for pipes and building materials. This decision was made by the shareholders of the project company ("Gazprom", Eni, Wintershall and EdF) on Monday, 15 December, and recently the pipe companies and other contractors would be notified of the freezing.
In total, the construction of the first line of "South Stream" required 680 thousand tons of pipes. At the same time, representatives of the "United Metallurgical Company" (Which had supplied 35% of the underwater pipes for the first line of the project) and "Europipe" (Which had supplied 50% of the pipes) are not aware of the freezing of contracts. According to them, supplies continue.
A representative of "Severstal", which has already shipped pipes (15% of the thread), declined to comment. Earlier, the South Stream project noted that all of the pipes that were shipped for the construction of "South Stream" are now stockpiled in Bulgaria. A source close to one of the structures in "Gazprom" confirmed that the pipe manufacturers have already been notified of suspension.
"The company will be deciding what to do with the pipes already produced and other materials at a meeting with contractors on Monday," one of the leading pipe manufacturers tolet a "Vedomosti" reporter. This information was later confirmed by a source that is close to one of the structures of "Gazprom". According to him, at the meeting the question of how to redirect the pipes for the construction of a gas pipeline to Turkey will also be discussed. The source at one of the South Stream contractors said that all contracts with suppliers are drawn up under English law, so that the costs incurred by stopping the project (ordered equipment or raw materials) are to be compensated.
