Eni’s Scaroni Sees Grim Prospects for South Stream Project

The on-going standoff in Ukraine could come with some complications for the South Stream pipeline project, while Gazprom continues to select companies to proceed with the construction activities.

"The South Stream project will put into question the many authorisations that European countries must give to complete the project," Eni’s CEO Paolo Scaroni said on Thursday, as reported by Reuters.

According to Scaroni, the Crimea crisis could undermine the permitting process for the pipeline. Eni holds 20% of the company in charge of the offshore section.

A few hours later, on Friday, several reports claimed that South Stream is to award a 3.5 billion euro contract to Timchenko-controlled Stroitransgaz for the construction of the Bulgarian section of the pipeline.

On Thursday, the US Treasury added Gennady Timchenko to the list of the officials affected by sanctions.