Slovenia, Russia to move on South Stream

LJUBLJANA, Slovenia, Nov. 9 (UPI) -- Russia and Slovenia are expected to sign an agreement for the South Stream natural gas pipeline on the sidelines of a World Cup qualifier, officials said.

Slovenia Economic Minister Janez Kopac told the Slovenian-language daily Dnevnik a deal with Russian gas giant Gazprom could develop for South Stream during a World Cup qualifier scheduled for Saturday.

"Slovenian company Geoplin and Russian Gazprom will have 50 percent participation each in the joint company which will be founded in accordance with the agreement, and will have a special taxation status which the Russian side has been asking for during the last several months," he explained.

The joint company will open South Stream to regional utilities under the provisions outlined by the European Union, Serbian news outlet B92 reports.

The company will govern and construct the Slovenian artery of South Stream.

South Stream, along with its Nord Stream counterpart, is part of a Russian plan to move gas to Europe while avoiding politically sensitive territory in Ukraine, which hosts the bulk of Russian gas for Europe currently.

South Stream would bring natural gas from Central Asia and Russia to the Balkans and other European customers along a route that avoids Ukraine. Turkey recently approved preliminary steps for South Stream construction in the Black Sea, and Serbia signed agreements to host the pipeline.