August 22, 2008

Italian PM denies plans to head South Stream pipeline

RIA Novosti reported that Mr Romano Prodi Italy's outgoing PM will not head South Stream a natural gas project by Gazprom and the Italian Eni company.

Mr Silvio Siriana was quoted by ANSA as saying that Russia had earlier proposed Mr Prodi also former head of the European Commission, the presidency of South Stream, but that he had not found it possible to accept the job. Mr Siriana said "It is highly unlikely that anything will change."

Russian business daily Kommersant said citing a government source "Analysts believe that Gazprom will do exactly as they did with Nord Stream and former German chancellor Mr Gerhard Schroeder who heads the shareholders' committee." The post is roughly equivalent to board chairman.

The estimated cost of the South Stream project is USD 14 billion.