Russian Ambassador in Belgrade Alexander Konuzin has stated that the project for the construction of the South Stream gas pipeline is still in the preparation phase, aiming at strengthening its capacity.

“Parallel work is being done on a feasibility study. That is why I cannot say now where the pipeline will enter Serbia - near Zajecar or Nis, because the project is being done by experts,” Konuzin said in a statement published by magazine Ekonom:east.

He recalled that an agreement on joining the project had recently been signed with Hungary and that contact had been made also with the French and Croats.

In reference to Russia's loan to Serbia worth one billion U.S. dollars, Konuzin recalled that an agreement had already been made in principle for an amount of USD 200 million and that the loan will be used to stabilize the country's budget.

According to Konuzin, several projects for bilateral cooperation between Serbia's and Russia's railway companies had been defined, but projects for which the loan funds will be used are yet to be specified.