BELGRADE, Serbia, Sept. 11 (UPI) -- Serbian ratification of an energy deal with Russia to develop the South Stream pipeline does not equate to a launch of production, officials said Thursday.
Yuri Buligin, a Russian trade official, addressed the Serbian Chamber of Commerce saying investment and production of South Stream depended largely on the political will of Belgrade, the Serbian B92 news service reported.
He praised a decision by the Serbian Parliament to ratify the South Stream agreement but expressed concerns the project would actually take place.
"There is a serious problem in the field of energy cooperation," he said.
Serbia could emerge as a major energy resource if the South Stream gas pipeline to transport Russian natural gas to Italy through Austria, Bulgaria, Hungary and Serbia is realized.
Russian firms were interested in investing in Serbia, but concerns over the country's energy infrastructure have delayed any deals.
Buligin said Russian oil major LUKoil and energy giant Gazprom had expressed reluctance to back the South Stream pipeline because of those concerns.
