http://www.b92.net/eng/news/business.php?yyyy=2014&mm=06&dd=09&nav_id=90604

June 9, 2014 | 12:15
Serbia "must postpone start of South Stream construction"

Source: Blic, Tanjug

BELGRADE -- Bulgaria's decision to suspend work to build South Stream
at the request of the European Commission means that Serbia will have
"postpone the start of works."

This is according to Deputy Prime Minister Zorana Mihajlović.

"Bulgaria is a node, so until the talks between Bulgaria and the EU
and Russia and the EU are over, we are on hold as well, or until
Russia changes the route. But in any case, the result of either
scenario is a delay in the work in our country," she told the daily
Blic.

Minister of Mining and Energy Aleksandar Antić stressed that the
pipeline's future depends mostly on an agreement between the European
Commission, EU members and Russia.

"South Stream is important to us as a development and energy project,
but it is clear that Serbia is just one country on the pipeline's
route, but that, besides Russia, it is the only country on that route
that is not a member of the EU," he remarked.

Whether a formal decision to suspend the works will be made "remains
to be seen - and we will continue to monitor the situation," said
Antić.

Serbia's natural gas public enterprise Srbijagas, which is in charge
of the project in this country, is negotiating a loan with Gazprom,
and plans to sign contracts with contractors in late June. Srbijagas
representatives told the newspaper that activities would not be halted
on the project, "unless the government decides otherwise."

The EU asked Bulgaria on Wednesday to halt the work on South Stream.
European commissioner for energy spokesperson Sabine Berger listed two
legal reasons for the request. One is the European Commission's demand
to bring bilateral government agreements concerning the construction
of South Stream in line with the provisions of the Third Energy
Package.

Besides that, Brussels was suspicious of Bulgaria breaching EU rules
when inviting construction tenders for infrastructure projects and
giving privileges to Russian and Bulgarian companies, Tanjug reported.



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