Alexey Miller, Chairman of the Gazprom Management Committee moderated a meeting today at the Company's headquarters. The meeting was focused on the South Stream project implementation.

Pursuant to the assignment by Vladimir Putin, Prime Minister of the Russian Federation, a decision was made to significantly speed up the project implementation launch. The meeting approved a detailed action plan that would make it possible to start the South stream gas pipeline construction in December 2012 instead of 2013 as had been previously planned.

“We have everything in place to significantly expedite the previously announced date of the South Stream construction launch. We have a regulatory basis, great interest of the project participants in Europe, the required funds and the unique track record of delivering large-scale gas transmission projects offshore. The project is in great demand, people are looking forward to it and we are ready to launch it,” said Alexey Miller at the meeting.

The South Stream construction schedule developed by Gazprom will be submitted to the Board of Directors of South Stream Transport in February.

Background

With a view to diversify the natural gas export routes Gazprom is implementing the project for construction of a gas pipeline running under the Black Sea to the countries of Southern and Central Europe – the South Stream project.

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

On September 16, 2011 the South Stream Transport shareholders signed the Agreement for the offshore section of the project. Pursuant to the Agreement, the stakes in the offshore gas pipeline project are distributed as follows: Gazprom – 50 per cent, Italian Eni – 20 per cent, German Wintershall Holding and French EDF – 15 per cent each.

In the third quarter of 2011 the Consolidated Feasibility Study of South Stream was finalized and included the feasibility study of the offshore section and feasibility studies of the respective gas pipelines in the host countries of Southern and Central Europe.

The Consolidated Feasibility Study contains key engineering solutions of the project including their substantiation, environmental safety assessment and environmental measures, economic efficiency evaluation including capital and operational expenditures.

On December 30, 2011 Vladimir Putin, Prime Minister of the Russian Federation authorized Gazprom to speed up the launch of the South Stream project and to start its construction in 2012.