Cost of the South Stream gas pipeline construction, via which Gasprom plans to deliver gas to Europe via the Black Sea, increased by 47% against the initial assessment up to 23.5 billion Euro ($29.8 billion at the current rate), Interfax reported referring Alexander Ivannikov, senior deputy chief of Gasprom Financial –Economic Department.
Ivannikov said that construction of the offshore section of the South Stream increased up to 14 billion Euro and the onshore sections in Europe – up to 9.5 billion Euro. Initially construction of the offshore section of the pipeline was estimated at 10 billion Euro, while the European section – 6 billion Euro. Gasprom would like to use guarantee of EKSAR – the Russian Agency for Insurance of Export Credits and Investments – for the pipeline construction, Ivannikov said.
The South Stream will ensure delivery of 61 billion cub.m. of gas a year to Europe bypassing Ukraine. The section through the Black Sea bottom will be built by South Stream Transport company owned by the consortium of investors (50% by Gasprom, 20% by Italian Eni and 15% by German Wintershall Holding and French EDF each). The onshore sections through the territory of Bulgaria, Serbia, Hungary and Slovenia must be built by the joint ventures of Gasprom by the companies of the countries, via which the pipe will be laid.
The gas pipeline construction is slowed down by the European Commission, which believes that the project does not correspond to the EU legislation. Gasprom plans to deliver only its own gas via the South Stream pipeline, while the European Third Energy packet demands that the pipelines’ owners should provide their capacities to other suppliers.
In May 2014 Russian President Vladimir Putin said that Moscow will consider construction of the South Stream through the non EU-member states, if Brussels hinders the project implementation. In early July Bulgaria temporary suspended the gas pipeline construction by the European Commission’s demand.—0—
Economics
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Rice imports to Azerbaijan have soared to unprecedented levels during the January-November 2024 period, reflecting both rising domestic demand and increasing global food prices. Over this period, the country imported 60,400 tons of rice, marking an 18.6% increase in volume and a 35.3% rise in value compared to the same period in 2023.
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Over 17,750 life insurance contracts and 40,661 property insurance contracts were signed through Azerbaijan’s Mortgage and Credit Guarantee Fund (MCGF) between 2022 and 2024, reflecting the growing role of the Fund in strengthening the housing finance and insurance markets. These figures were revealed by Rasim Abdullayev, Director of the Mortgage Lending Department at MCGF, during the seminar "Tools for Supporting Housing Finance and Entrepreneurship."
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The value of paid services provided to the population in Baku reached 6.94 billion manats in the first eleven months of 2024, reflecting a real-term increase of 9.2% compared to the same period in 2023, according to data from the Baku City Statistical Department.
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According to data from the Baku City Statistical Department, the retail trade turnover in Azerbaijan’s capital, Baku, increased by 5% year-on-year from January to November 2024, reaching 31.6 billion manats. This growth reflects the steady recovery of the economy and consumer confidence amid broader market stability.
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