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2014-05-28 18:25:00

RUSSIA BUILD THE SOUTH STREAM

RUSSIA BUILD THE SOUTH STREAM

A consortium led by a company partly owned by a target of U.S. sanctions has won a multi-billion-dollar contract to build a section of the South Stream pipeline through Bulgaria, Russian natural gas monopoly Gazprom said Tuesday.

The contract has been awarded to a Bulgarian consortium, Gasproekt Jug AD, and privately owned Russian company ZAO Stroitransgaz.

ZAO Stroitransgaz is 50% owned by Stroitransgaz Holding, which was a target of U.S. sanctions following Russia'a annexation of Crimea, along with other companies owned or controlled by Russian businessman Gennady Timchenko. Mr. Timchenko owns 63% of the holding company.

A number of companies with names similar to ZAO Stroitransgaz, controlled by the holding company, have also been targeted by sanctions. ZAO Stroitransgaz isn't on the U.S. sanctions list, however.

The company wasn't available to comment on who owns its other half.

South Stream is a project planned by Russian state-run energy giant OAO Gazprom to bring gas from Russia via the Black Sea to Bulgaria and the rest of Europe.

wsj.com

Tags: RUSSIA, GAZPROM, GAS, SOUTH, STREAM, EUROPE

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