Alexander Ivannikov, First Deputy Head of the Department for Finance & Economics at Gazprom, has announced a major spike in the cost of the South Stream gas pipeline.

Ivannikov, as cited by Interfax and Bulgaria’s Focus news agency, made clear Thursday that the cost of the offshore section of the South Stream gas pipeline had increased to EUR 14 B from a rate of EUR 10 B, while the price tag of the European section of the conduit had been revised to EUR 9.5 B from a rate of EUR 6 B.

The latest calculations entail a 47% price spike to EUR 23.5 B.

The overland section of the gas pipeline on Bulgarian territory is to cost no less than BGN 3.7 B, excluding the cost of the pipes, according to recent estimates of South Stream Bulgaria.

South Stream Transport is to build the offshore section of the gas pipeline from the Russian town of Anapa to Karadere area on the Bulgarian Black Sea coast.

Gazprom holds a 50% stake in South Stream Transport, while Italy’s Eni controls a 20% stake, and Germany’s Wintershall and France’s EDF own 15% stakes each.