Serbian sector of South Stream will be financed by Russian banks or Gazprom

, News Serbia Energy

Managing Director of Srbijagas, Dusan Bajatovic, stated that construction of gas pipeline South Stream through Serbia will be completely financed by Russian banks or Gasprom.

Bajatovic, who was chosen for the member of this organization for the fourth time on European Business Conference in Amsterdam, said that ideological project is finished and finalization of technical project, which should be finished by 30 June, is in progress at the moment.

We expect financial team of Gasprom and banks that will follow South Stream to come on Monday, Sberbank and Gasprom bank before all, and then we’ll start conversations about new financing of South Stream that should increase Russian capital in financing of this project and to practically reduce everything.

He added that “no matter if this is credit or loan from Gasprom to Srbijagas, mostly South Stream will be completely financed by Russian banks or Gasprom completely with the most profitable financial conditions on market”.

Bajatovic said that beginning of works is expected at the end of November i.e. in the beginning of December, and buyout of parcels i.e. partial expropriation will begin by then as he précised and only small part of parcels will be bought out permanently.

According to his words, the money for this is already prepared and realization of competition for assets that should pay amends shall begin.

Bajatovic stressed that “all other preparation works are completed in 80 to 90% and confirmation of revision that project is technically done is being awaited what means that we can expects tenders for work performers in September.

“I expect that we’ll have tenders for pipes’ suppliers and for suppliers of compressor stations and then we can have all conditions with issuance of required construction license so the project “South Stream” can begin”, Bajatovic concluded.