(MENAFN) Russia's state-owned gas exporter OAO Gazprom is paying Italy's gas contractor Saipem the cost of two pipe-laying ships on a USD45 billion Black Sea gas pipeline cancelled project, Gulf Times reported.
Although neither company would comment on the current payments, it shows how South Stream is still a drain on resources three months after President Putin announced Gazprom would drop the project.
The pipeline was scrapped as the crisis in Ukraine soured relations between Russia and Europe. Gazprom said it's spending USD633 million on the defunct project in the six months to the start of April.
All contracts are suspended for now. Saipem referred to statements made last month that the South Stream contract was still under suspension, pending a decision from the client.
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