Gazprom to Increase Capital of South Stream Operator Company by 75 Mln Euro

The Board of Directors of "Gazprom" approved the deal to contribute additional capital in the amount of 75 million euro into the company South Stream Transport B.V.

South Stream Transport B.V. is the operator of the offshore pipeline "South Stream". Back in December 2014, Russia decided to stop the construction and instead decided to build a gas pipeline named "Turkish stream."

In December, Russia announced the rejection of the "South Stream", which was to pass under the Black Sea and through Bulgaria to deliver fuel to the Balkan Republics, Hungary, Austria and Italy. The project was abandoned due to various reasons including the counter-productive stance of the European Union towards Russia.

Instead, it was decided to build a pipeline to Turkey and to construct a gas hub for Southern European consumers on the border with Greece.

After that, "Gazprom" signed an agreement with Eni, Wintershall and EDF to buy back 50% of South Stream Transport BV. Gazprom reported that it had bought back its European partners share in the South Stream Transport for 56 billion rubles.