'Gazprom Subsidiary' in Construction of Bulgaria's South Stream

Energy | July 3, 2014, Thursday // 13:17|  views

Photo by BGNES

Centrgaz, a subsidiary of Gazprom, could step in the construction of the South Stream pipeline's Bulgarian stretch, according to a Russian daily.

Vedomosti's website reports that Centrgaz, which has not fallen under EU or US sanctions over the Ukraine crisis, has already won the tender for South Stream in Bulgaria's western neighbor Serbia.

Alongside Stroytransgaz, where blacklisted businessman Gennady Timchenko is the major shareholder, Centrgaz is also expected to be among subcontractors in Bulgaria, Vedomosti argues.

The daily alleges that the decision for Serbia is to be officially announced within days, but its sources do not reveal what role might Centrgaz play in Bulgaria.

It outlines two scenarios regarding South Stream Bulgaria, saying Centrgaz could either replace Stroytransgaz as subcontractor (as it is not sanctioned) or take part in a new tender.

In June, the EU Commission launched an infringement procedure against Bulgaria over non-compliance of South Stream with EU rules and also with the Third Energy Package.

The US, for its part, has voiced its concerns that Stroytransgaz is to build the pipeline despite sanctions on Gennady Timchenko announced by the White House.

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Tags: Stroytransgaz, Centrgaz, Gennady Timchenko, South stream, sanctions, infringement procedure, EU Commission


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