ITAR-TASS-European companies to lose €2.5 bln on frozen South Stream project
European companies will suffer direct losses valued at no less than €2.5 billion from the frozen South Stream project, according to the South Stream Transport Company.
Japanese companies will lose an order worth €320 million thus bringing the overall foreign losses from freezing the project to almost €2.820 billion. German Europipe was supposed to supply 50% of pipes for the first spur of the South Stream pipeline under a contract worth €500 million.
Japanese consortiums Marubeni-Itochu and Sumitomo received a €320 million euro order for supplying 40% of pipes for the South Stream’s second spur.
In March this year, South Stream Transport B.V and Italian Saipem signed a contract for laying the South Stream’s first spur. Saipem is a sister company of Italian ENI, which acted as a contractor for laying pipes under the Blue Stream and Nord Stream projects. The contract was valued at €2 billion.