"On February 16, 2016, South Stream Transport B.V. replied to a request by Saipem S.p.A. to initiate an arbitration procedure, in which all demands Saipem S.p.A. were fully rejected and announced its intention to start a counterclaim. In a reply to the South Stream Transport B.V. counterclaim, Saipem S.p.A. rejected the basis for a counterclaim against it," Gazprom said in its IFRS report for 2015.
The tribunal for international arbitration has been formed, Gazprom said, adding that Saipem had taken the dispute over alleged losses to the International Arbitration Chamber of Paris.
The South Stream was suspended by Bulgaria at the request of the European Commission in June 2014 as it was deemed non-compliant with the European Union's Third Energy Package, which prohibits companies from both owning the gas and operating the pipeline. Russian President Vladimir Putin officially canceled the project in December 2014.