Gazprom to Buy 50% of Shares in South Stream Transport

Russia's energy concern Gazprom is to acquire half of the shares of its Berlin-based subsidiary, South Stream Transport.

Gazprom's board of directors agreed that a total of 205 900 shares will be sold by Gazprom Germania to the main company, RIA Novosti reported.

South Stream Transport B.B. is a joint venture of Gazprom, Italian ENI, French EDF and German Wintershall Holding.

It is to build the undersea section of the South Stream gas pipeline, which will cross the Black Sea and enter the EU through Bulgarian land.

Under the current schedule, gas is to be first poured into pipes of the South Stream in 2016, and the pipeline should become fully operational to years later.

The project, however, has recently been subject to heated discussions in Europe, and also in Bulgaria, as some suggest it should be frozen due to the situation in Ukraine.

Last week the European Parliament adopted a non-binding resolution stating that construction of the South Stream should be halted.

Gazprom is adamant that work on the project continues despite threats of economic sanctions, with some reports claiming it explores "non-EU" options (such as Turkey) to deliver gas through it.