Alexey Miller, Chairman of the Gazprom Management Committee signed the Order “On the Establishment of the Coordinating Committee for the South Stream Project”.

The Committee is tasked to prepare and implement activities stipulated by the Memorandum of understanding for the South Stream project execution between Gazprom and ENI to examine opportunities of the gas pipeline construction. Before June 2008 the Committee will organize investment feasibility study for the South Stream project and further activities for the practical execution of the project.

Alexander Medvedev, Deputy Chairman of the Gazprom Management Committee, Director General of Gazprom export was appointed to the post of the head of the Coordinating Committee.

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On June 23, 2007 Gazprom and ENI signed the Memorandum of understanding for the South Stream project execution.

The Memorandum sets the cooperation directions for both companies in the engineering, financing, construction and management sectors for the South Stream project.

Pursuant to the document, the South Stream marine section will lay across the Black Sea from the Russian coast (the Beregovaya compressor station) to the Bulgarian coast. The total length of the Black Sea gas pipeline section is around 900 km, the total depth is more than 2000 m.

The parties consider two different construction routes for the onshore section crossing the territory of the European Union member countries. Within the project execution Gazprom and ENI will utilize modern technologies in compliance with the strict environmental requirements.

Gazprom and ENI participate in the Blue Stream project implementation (gas main development for direct Russian gas deliveries to Turkey through the offshore section of the Black Sea). Gazprom together with ENI created a joint venture Blue Stream Pipeline Company to provide financing, pipeline construction and its operating. Blue Stream was launched in 2003. In 2005 Turkey received 5 bcm of gas via the Blue Stream Pipeline, and in 2006 Turkey will receive nearly 7 bcm of gas.

In November 2006 Gazprom and ENI signed the Agreement on strategic cooperation stipulating an opportunity for Gazprom to provide direct Russian gas deliveries to the Italian market in 2007. By 2010 annual gas volume supplied will reach 3 bcm. The Agreement foresees prolongation of existing contracts for gas supply up to 2035.