Gazprom Approves Capital Increase of South Stream Transport B.V.Energy | March 2, 2015, Monday // 11:52| views
Gazprom CEO Alexei Miller, photo by EPA/BGNES
The Board of Directors of Gazprom has approved a capital increase of EUR 569.4 M for South Stream Transport B.V.
A total of EUR 109.7 M were included in its capital in the final quarter of 2014 and a total of EUR 459.7 M is to be included in its capital in the first quarter of 2015, according to a media statement of Gazprom, as cited by the TASS news agency.
According to Russian news portal 'Vesti Finance', South Stream Transport B.V. can initially be used for the construction of the offshore section of the Turkish Stream project.
In December 2014, Gazprom signed agreements with Italy’s Eni, Germany’s Wintershall and France’s EDF on the acquisition of a 50% stake in South Stream Transport B.V., thereby increasing its stake to 100%.
South Stream Transport B.V. was established for the construction of the offshore section of the South Stream gas pipeline.
Earlier Gazprom had a 50% stake in the project company, while Eni owned a 20% stake, and EDF and Wintershall held 15% each.
On December 1, 2014 Russian President Vladimir Putin announced the decision of Russia to quit the South Stream gas pipeline project.
Instead, Russia chose to redirect the gas pipeline through Turkey and renamed the project to “Turkish Stream.”