Bosnia's Serb Republic President Milorad Dodik said a memorandum on the construction of the South Stream natural gas pipeline leg through the Republic will be signed with Russia on September 20 in the Black Sea resort of Sochi, news agency Srna reported.
Dodik told reporters in Banja Luka that the memorandum envisages the establishment of a joint venture firm between the Serb Republic's Gas Res and Russia's Gazprom, which will be in charge of the gas supply and deliveries from the pipeline. The report reminds that the South Stream project is estimated to cost EUR 15.5bn, out of which EUR 10bn will go for the construction of the pipeline's underwater section in the Black Sea.
Building works are due to start at the end of this year. The pipeline will have several legs that will cross Bulgaria, Greece, Serbia, Hungary, Croatia, Slovenia and Austria. The first quantities of South Stream gas are expected to start flowing by end-2015, while the pipeline flow should reach its full capacity of 63 billion cubic metres by 2018.