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    Euractiv: South Stream victim of Crimea annexation

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Talks from EU Summit decided that Europe should increase its energy independence on Russia and name of Russian tycoon is on he US blacklist adopted in response to Russia’s annexation of Crimea.

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Euractiv: South Stream victim of Crimea annexation

The South Stream pipeline project, which carries Russian gas to Europe, bypassing Ukraine, may be “dead”, following the EU summit in which leaders decided that the Union should increase its energy independence from Russia.

The Italian oil major ENI, one of the key shareholders in South Stream, has second thoughts about the project, while the Russian tycoon presented as the winner of the tender to build the Bulgarian stretch of the pipeline, appears on the US blacklist adopted in response to Russia’s annexation of Crimea.

The US sanctions block Gennady Timchenko’s assets, and should prevent his firm from carrying out any transactions on EU territory, blocking the pipeline's construction.

According to Reuters, Timchenko’s company, Stroystransgaz, has been chosen to build the Bulgarian part of the South Stream pipeline. Timchenko’s name does not appear on the EU's own blacklist of persons, whose assets were frozen by European leaders on Friday.

The Russian businessman is reported to have a 63% share in Stroytransgaz.

The total cost for the construction of South Stream is estimated at €17 billion, while the pricetag for the Bulgarian sections is €3.5 billion.  MORE

 

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