South Stream Serbia company shuts down

It is official – the Russian are giving up on construction of gas pipeline in our country. As representatives of Gazprom said for Novosti, the South Stream Serbia company will shut down.

The company has been operating for six years, it was set up as a mutual investment of the Russian and Serbian party to transport gas from Russia through Serbia.

Since in this company which was set up in Switzerland in 2009, Gazprom has majority stake of 51%, it can close it.

- Due to halt in project implementation for South Stream gas pipeline construction, activity of special purpose, Juzni tok d.o.o. Novi Sad will be suspended – Gazprom says.

The company has been operating as an off-shore company in our country and smaller stake of 49% belongs to Srbijagas. The employees, some 40 of them, are paid by the Russian party.

The company headquartered in Novi Sad is located at the offices of the Oil Industry of Serbia so it will not have office space to sell. The employees of the South Stream Serbia will have to find other job.