South Stream Work in Serbia on Course, Gazprom Says

Leonid Chugunov, head of the Russian gas and oil giant's Project Management Department, said basic construction and assembly works of the South Stream pipeline are expected to start at the end of the second quarter of 2014, according to the timetable.

Speaking about the significance of the South Stream pipeline for Serbia, Chugunov said the preliminary works had been in full swing since November 23.

Regulation of land ownership rights is nearing completion for the priority section, with technical control of design documentation also underway, he added.

"In designing and defining the key technical parameters for the South Stream, we paid particular attention to environmental safety. Our intention is to use leading-edge technology, while complying with the most stringent environmental requirements," he continued.

South Stream's first pipes were welded last November in Serbia to mark the official start of works to build the pipeline section through the country.

When complete, the pipeline will pump gas from Russia under the Black Sea and through Bulgaria and Serbia towards Hungary, Slovenia and Italy.

Construction of the South Stream pipeline in Serbia will cost about 2 billion euro of which Serbia must pay half.