Matters governing the construction of the South Stream gas pipeline from Russia should be settled between the Kremlin and Brussels, a Serbian diplomat said.

Serbian Foreign Minister Ivica Dacic arrived Tuesday in Moscow for a bilateral trade summit. Serbia would play host to a section of the South Stream pipeline and the diplomat said preparatory work for the project was proceeding as planned.

"All other matters will be settled between Russia and Brussels," he said. "It's a matter of political agreements."

European Energy Commissioner Guenther Oettinger in June said the South Stream project should be put on hold because it's not in compliance with legislation passed in the European Union. Last month, members of the European Parliament passed a resolution calling on "EU countries to cancel planned energy sector agreements with Russia, including the South Stream gas pipeline."

European regulators in February ruled Serbia hasn't taken the steps necessary to keep natural gas suppliers out of the pipeline transit sector.

Russia says South Stream would diversify transit options for European gas. Most of the gas Russia sends to Europe runs through Ukrainian territory.