Russia Courts Italian Banking System, Notifies Saipem of South Stream Suspension

The relationship between Russia and Europe took an usual turn in the last hours, with Gazprom seeing cooperation opportunities with the financial communities of Italy and Europe, while confirming the suspension of the activities for the construction of the offshore segment of the South Stream project.

‘Gazprom and UniCredit Bank signed a bilateral credit agreement worth a total of EUR 390 million in Vienna yesterday’ reads a note released by Gazprom on Friday. 

According to the Russian company, the deal is ‘of great historical significance’ and it could pave the way to stronger ties between Russia and Europe.  

A few hours before, Eni’s subsidiary Saipem announced it received a ‘notification of suspension of Marine Spread activities.’

Saipem said that the notifications refer to all the vessels at work to lay the pipes. The company did add that it is not possible at the moment to quantify the financial repercussions of the decision taken by the South Stream Transport.

‘At present it is not possible to determine the economic impact of the suspension on Saipem’s business, as both the duration of the suspension and the client’s ultimate decision on the project are unknown’ Saipem wrote on Thursday.

On Tuesday, the company said it would have continued operation activities for the offshore section of the South Stream as usual.