Saipem Receives Formal Notice for South Stream Demise

Italian company Saipem announced Thursday it had received a notification from Russia about the end of the South Stream gas pipeline project.

Saipem, a subsidiary of Italy's ENI, was to built South Stream's underwater section, but construction is now cancelled after Russian President Vladimir Putin said earlier this week the project was over.

The company refused to comment on the economic impact of Putin's decision, saying more aspects had yet to be made clear, according to Wall Street Journal.

Estimates of Saipem CEO Umberto Vergine cited by the influential daily suggest it might suffer losses amounting to EUR 1.25 B in revenue in 2015 as a result of the decision.

ENI has a twenty-percent stake in South Stream Transport, the joint venture in charge of the pipeline's offshore section.

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