Srbijagas Restructuring will not Impact South Stream Pipeline

The announced restructuring of Serbia's natural gas monopoly will not impact the development of the South Stream gas pipeline.

"Restructuring can only contribute to South Stream so that everything that depends on Srbijagas, and (a future) TransGas in particular, will be better and more efficient," said Serbian Energy Minister Zorana Mihajlović, said when asked whether the restructuring of the gas company would put the gas pipeline construction at risk

Tanjung reports that when asked how Serbia will finance the construction of South Stream across Serbia, Mihajlović said that ideas from Russia about the financing.

Sbrijagas will be divided, separating trade and distribution from storage and transportation. The company faces a mounted debt load of almost €1.2 billion, with liquidity at just 1% of short-term liabilities,

Mihajlovic said that the government will “prevent the financial collapse” of Srbijagas and any of its new borrowing. Debt has reached Energy Minister Zorana  told reporters in Belgrade.

“The situation brings the country into serious danger of disruption of the gas supply” coming from Russia, commented the Minister.