Gazprom filed counter-lawsuit against Italian Saipem for South Stream project

Offshore south streamGazprom has filed a counter-lawsuit against Italian Saipem for the South Stream project, according to the company’s 2016 report. The claim was filed on March 10, 2017, and amounted to 730 million EUR. The Italian company, for its part, filed a loss claim against Gazprom in connection with the winding-up of South Stream construction at the beginning of last year. The project was halted by a statement of the Russian President Vladimir Putin during a visit in Ankara in late 2014.

The pipes had to pass the bottom of the Black Sea and go out to the European coast near Varna. Now, however, Gazprom is working actively to realize the successor of this project – “Turkish Stream”.

Saipem’s claim amounts to 679 million EUR. It was brought to the Paris arbitration court in early 2016, but at the end of the year the expected compensation was reduced.

The both companies are currently in the process of exchanging information. Hearing on this case is scheduled for May 2018.

The South Stream case is listed as one of the operational risks for the company in the coming months. The report of Gazprom also drew attention to the case brought by the European Commission for the abuse of a dominant position in Central and Eastern Europe.

“At this stage, it is impossible to assess the potential negative impact of the ongoing investigation on Gazprom’s operations in Europe and the financial situation of the company as a whole”, says the documents. The company, however, points out that at this stage it is going to proceed without financial penalties.