Italy's Saipem Takes Gazprom to Court over South Stream Demise

Saipem, the Italian pipe-laying company that was to take part in the construction of South Stream, has filed an arbitration claim against Gazprom, a Russian business daily reports citing court documents.

The EUR 759 M claim has been lodged with Paris-based International Chamber of Commerce, RBC writes, adding the claim was submitted in November of last year.

South Stream, a gas pipeline project designed to supply Central Europe via Bulgaria and Serbia, was abandoned by Russia in 2014, with President Putin citing opposition from the EU.

Saipem, a subsidiary of state-controlled Italian oil and gas company Eni, has filed the claim against South Stream Transport B.V., the company that was to be responsible for the underwater section of South Stream. Initially, the Netherlands-based company was a joint venture of several shareholders including Gazprom, France's EDF and Germany's Wintershall. Gazprom, however, bought the shares of the other two as the project was declared abandoned.

According to RBC, South Stream Transport sought an out-of-court settlement, but Saipem rejected its request.

The Russian energy giant sought to attract Saipem into the Turkish Stream project, which was announced as an alternative to South Stream but which has been called into question by tensions between Moscow and Ankara.

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