Saipem, South Stream Transport sign peaceful settlement deal

MOSCOW, Apr 18 (PRIME) -- Italy’s Saipem and South Stream Transport B.V., affiliate of Russian gas giant Gazprom, have signed a peaceful settlement agreement over a cancelled gas pipeline South Stream, Saipem said in a statement on Thursday.

“South Stream Transport B.V and Saipem S.p.A. have positively ended their negotiations signing an agreement to amicably settle the arbitration concerning the South Stream Offshore Pipeline Installation contract entered into on March 14, 2014,” the statement read.

In December 2014, Russia decided to construct TurkStream, a gas pipeline to run to the Turkey–Greece border to replace South Stream, cancelled partially on E.U. requirement, which was supposed to carry Russian gas to Europe bypassing Ukraine.

Saipem was Gazprom’s partner under the South Stream project, and the company filed a suit to the International Chamber of Commerce of Paris against South Stream Transport B.V., affiliate of Gazprom which ran the project, seeking redemption of losses under the project, in 2015.

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