Russian Gazprom, the largest extractor of natural gas in the world and one of the world's largest companies based in Russia, is ready to purchase the steel pipes that is worth of US$1 billion from Severstal, ChelPipe, and OMK and a trader for the eastern section of the pipeline.

The South Stream pipeline will transport gas from Russia to Europe via the Black Sea, passing through Bulgaria, Serbia, Hungary and Slovenia and Austria.

Ukraine has refused to pay for the high price for gas provided by Russia and Russia has stopped the gas deliveries to Ukraine in June. The project has created controversies due to non-compliance with the European Union competition and energy legislation.