Gazprom receives lawsuit for 759 million euros for rejection of South Stream

Closure of the South Stream project has turned into the first major claim to Gazprom. Italian contractor Saipem, selected for the construction of the underwater section of the gas pipeline, requires 759 million euro.

Invitation to arbitration court
Saipem has sent a request for arbitration in the International Chamber of Commerce in Paris against South Stream Transport B.V., controlled by Gazprom, in November 2015, according to materials for investors of the Italian contractor. South Stream Transport was operator of the construction of the underwater section of South Stream, which was to pass under the Black Sea, bypassing the Ukraine, but was never implemented. Saipem requires 759 million euro from it.
The company specifies that this complaint may be included in the overall claim for damages for the breach of the contract and penalties from the Gazprom’s subsidiary, the amount of the damages hasn’t yet been fully calculated. Already on December 15, South Stream Transport was notified of the impending arbitration process, Saipem reports.
A representative of South Stream Transport reported through the official representative of Gazprom that the company received a notice from Saipem about the lawsuit to arbitration. South Stream Transport tried to negotiate on a settlement of the dispute by peaceful means, but the Italian contractor decided to sue, he added. South Stream Transport intends to defend its interests and fully contests the claims of Saipem, the company says. The representative of South Stream Transport declined to comment on details of the trial.

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