Serbia: Gazprom considers increasing its stake in South Stream Serbia AG

, News Serbia Energy

Russian gas company Gazprom said that is is considering increasing its stake in Swiss-based company South Stream Serbia AG, the company established for the purpose of construction of Serbian section of cancelled South Stream gas pipeline.

Gazprom currently holds 51 % stake in South Stream Serbia AG, while Serbian state-owned gas company Srbijagas holds the remaining 49 %. Gazprom’s Board of Directors should vote on this decision at the next meeting scheduled for 13 February.

In January, Serbian Prime Minister Ana Brnabic said that Serbian company South Stream, wholly owned subsidiary of South Stream Serbia AG, established for the purpose of construction of the gas pipeline of the same name, will soon be renamed to Serbian Stream in order to build a new gas pipeline connecting Serbia and Bulgaria.

Due to such plans, Serbian gas company Srbijagas will obtain short-term 15 million euros loan in order to increase the capital in Serbian Stream company. The company will be the main contractor for the construction of gas interconnection between Serbia and Bulgaria, which will enable Serbia to receive Russian natural gas supplied to Bulgaria via TurkStream gas pipeline, opening a new source of supply, other than through Ukraine and Hungary which is currently the only gas route available to Serbia.