Russian Ambassador in Serbia Alexander Konuzin said Tuesday that his country values the infrastructure projects it has undertaken in cooperation with Serbia, especially the construction of the South Stream pipeline.

Taking part in the 11th Economic Summit in Belgrade, Konuzin said the South Stream project should give a new impetus to the entire Serbian economy. He expressed expectation the pipeline will allow a series of chemical companies to crop up in Serbia, strengthening its export potential.

According to Konuzin, the distribution of Russian natural gas should strengthen the infrastructural and energy safety of Europe as a whole. The South Stream project is economically justified and will bring Serbia a stable revenue from transit taxes, Konuzin said.

The Russian diplomat reiterated that the Nabucco and South Stream pipelines are not conflicting projects. "Even if the Nabucco project is realized, there will still be demand from European countries for a large quantity of gas," Konuzin noted.

He also mentioned other infrastructure projects which should be realized in Serbia with the help of Russian loans, in the area of railway transport. Konuzin said there is a possibility Russian companies will take part in the reconstruction of the Belgrade-Bar railway.

River transport is also important for Russia, Konuzin said, noting Russian investors could get involved in the modernization of Serbian ports. Russia considers Serbia the key country to cooperate with in South East Europe, Konuzin said, adding Moscow wants close cooperation in various areas in the interest of both countries.