Headed by Alexey Miller, Chairman of the Gazprom Management Committee, a meeting dedicated to the South Stream project execution took place today at the Company's headquarters.

Taking part in the meeting were Alexander Medvedev, Deputy Chairman of the Gazprom Management Committee, Leonid Chugunov, Head of the Project Management Department and Marcel Kramer, Chief Executive Officer of South Stream.

The meeting addressed the current issues related to South Stream implementation in European countries and stressed that rapid progress was made on the project: a number of basic documents had lately been signed to regulate the relevant area of the Russian-Bulgarian cooperation and accords had been reached to prepare the feasibility study for the gas pipeline construction in Romania. In general, the partners in South Stream are cooperating proactively on all the issues related to timely implementation of the project.

It was noted that further success of South Stream would demand ever greater efforts as well as regular and efficient cooperation among the project participants and the EU representatives.

Background:

The South Stream project is implemented with a view to diversify the routes of natural gas supply to European consumers and envisages construction of a gas pipeline running under the Black Sea to the countries of Southern and Central Europe.

A provision is made to gradually build up the South Stream capacity. The overall design capacity of the offshore section will reach 63 billion cubic meters per year. The first gas pipeline string is scheduled for commissioning in late 2015.

Intergovernmental agreements were signed with Bulgaria, Serbia, Hungary, Greece, Slovenia, Croatia and Austria in order to implement the onshore section beyond Russia.

At present, the South Stream Consolidated Feasibility Study is being elaborated including the studies for the offshore section and for the respective gas pipelines in host countries of Southern and Central Europe.

In September 2010 Marcel Kramer assumed the post of the South Stream project CEO. He is responsible for the comprehensive execution of the project that embraces designing, permitting, financing, construction and operation of the Black Sea section as well as onshore sections of the gas pipeline in foreign countries.