REUTERS
The Italian-based Saipem requested arbitration proceedings against Gazprom-controlled South Stream Transport B.V. at the International Chamber of Commerce (ICC) in Paris in November 2015, Russian news agency RBC reported with reference to information materials for shareholders of the Italian contractor.
The company’s claim amounts to approximately EUR 759 million, RBC reported.
"The claim could be integrated in case of costs directly deriving from the termination for convenience and related to ongoing activities or not yet fully calculated. Saipem’s notice to the ICC of the request to South Stream Transport BV took place on December 15, 2015," the company said in its statement
As known, South Stream Transport was the operator of the sea part of the South Stream project, which was planned to pass under the Black Sea, circumventing Ukraine. However, Russia last year aborted the project.
RBC said it was informed by Gazprom’s official representative that South Stream Transport had received a notice of the arbitration lawsuit from Saipem due to a dispute under the contract for the South Stream construction. South Stream Transport was seeking to negotiate a settlement of the dispute, but the Italian contractor decided to sue, according to the source.
South Stream Transport is going to defend itself against any claims of Saipem, the company’s representative said. Details of the trial were not disclosed.
As known, Russia abandoned the pipeline project to transport Russian natural gas through the Black Sea in December 2014. Saipem, controlled by Italy's state-run oil producer Eni SpA, was the main contractor at South Stream and had two deals worth EUR 2.4 billion.
On July 8, South Stream Transport BV, a Gazprom unit, terminated the contract signed with Saipem to build the first line of the undersea pipeline. Then, in July, Gazprom announced that it had suspended work on the construction of new “southern corridor” gas pipeline designed, inter alia, for feeding gas into South Stream. The Turkish Stream pipeline project of Russian energy giant Gazprom was also put on hold.