Reuters: Serbia, Russia say ready to go ahead with South Stream gas line

Russia said on Tuesday it expected Serbia to begin building its leg of the Gazprom-led South Stream gas pipeline as planned in July, saying Belgrade and Moscow were ready to move forward with the project.

Against a backdrop of conflict in Ukraine, the pipeline plan has become a focus of tension between Russia and the European Union, with Serbian neighbour Bulgaria this month suspending construction at the behest of Brussels pending a ruling on whether the project complies with EU law.

Serbia finds itself caught between its ambitions to join the EU, with which it has started accession talks, and historical ties with Russia. Gazprom's oil arm, Gazprom Neft, owns 51 percent of Serbia's main oil company, NIS. Construction of the Serbian leg is due to begin in July.
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