Gazprom in Talks to Route South Stream Through Croatia

Gazprom has entered into talks with Croatian pipeline operator Plinacro to route the South Stream pipeline through Croatia, Plinacro spokespersons have confirmed.

In a phone interview with Reuters news agency today, a spokeswoman for Plinacro said that Gazprom is currently considering Croatia as an alternative route country to Hungary, but said that talks were still ongoing.

"The fact is that we are having intense talks but the final decision rests with Gazprom," she said.

The statement confirms reports by both the AFP news agency and the Croatian Times yesterday, which both reported that Plinacro and Gazprom had entered the talks with the decision resting solely with Gazprom.

"At the moment the chances are 50:50 that we will get the transit route for South Stream," an unnamed source close to the matter is reported by the Croatian Times to have said.

Speculation over Hungary's involvement in the South Stream pipeline has previously been rife with Croatia having been mooted in media reports as an alternative transit country. Delays on the Hungarian side in transferring a 50 per cent stake in the South Stream Hungary project from state-run bank MFB to state-run energy supplier MVM have been reported to be particularly frustrating the process.

However, the MFB-MVM stake was completed at the beginning of this month.