Today in Budapest (Hungary) in the course of the Russian-Hungarian Intergovernmental commission meeting in the presence of First Deputy Prime Minister of the Russian Federation Viktor Zubkov and Hungarian Prime Minister Gordon Bajnai the procedure of signing the incorporation documents of the South Stream Hungary Zrt. joint engineering company (JEC) was completed. The company is created on an equal basis by Gazprom and MFB – Hungarian Development Bank for the purpose of implementing the South Stream project in Hungary. The registration procedure will start simultaneously with the incorporation documents signing.

South Stream Hungary Zrt. will organize the preparation of a feasibility study of the Hungarian segment of South Stream, as well as finance, build and manage the gas pipeline in Hungary.

“For all the participants of the South Stream project the entry of Hungary into this large-scale joint endeavor is a markedly important development. We consider it to be another proof that our partners have a sophisticated understanding of this mutually beneficial trans-European infrastructural project. We have no doubt whatsoever that South Stream will serve as a guarantee of security and flexibility of Russian natural gas supplies to European markets,” said Alexander Medvedev, Deputy Chairman of the Gazprom Management Committee.

“Today’s signing of the article of association of the joint venture company, which plays such a major role in the implementation of the Hungarian section of South Stream, is the result of constructive negotiations by the two cooperating parties. In line with the objectives stated by the Hungarian Government, MFB shall continue to fulfil its duty as Gazprom’s partner in successfully completing the South Stream gas pipeline, a project of substantial Hungarian, and I believe European significance,” declared MFB CEO Janos Eros.

Background:

In order to diversify natural gas export routes Gazprom plans to build the South Stream gas pipeline across the Black Sea to the countries of South and Central Europe.

In February 2008 Russia and Hungary signed the Intergovernmental Agreement envisaging Hungary’s engagement into the South Stream gas transmission system project.

Gazprom and MFB signed a basic agreement on cooperation in the construction of the gas pipeline and gas transit through Hungary as part of the South Stream project on

March 10, 2009. The agreement establishes the principles of cooperation between the parties during the pre-investment and subsequent stages of the project, along with the terms governing the creation and functioning of the JEC.

MFB – Hungarian Development Bank is engaged in financing major projects contributing to the development of the Hungarian economy.