Led by Alexey Miller, Chairman of the Gazprom Management Committee, the Company's delegation paid today a working visit to the Republic of Bulgaria.

Alexey Miller and Mihail Andonov, Executive Director of Bulgarian Energy Holding signed a protocol of the Final Investment Decision on the South Stream gas pipeline construction in the Republic of Bulgaria. The document was inked in the presence of Bulgarian Prime Minister Boyko Borisov.

Crucial issues of the cooperation deepening in the gas sector were discussed at meetings with Boyko Borisov, Bulgarian Prime Minister and Delyan Dobrev, Bulgarian Economy, Energy and Tourism Minister.

At negotiations with Dimitar Gogov, Executive Director of Bulgargaz the parties discussed conclusion of a new long-term contract for Russian gas supplies to Bulgaria. According to the contract terms and conditions, gas will be delivered by the South Stream gas pipeline.

“The South Stream project implementation in Bulgaria strengthens our bilateral relations and maintains energy stability throughout Europe. A 538-kilometer section of the gas pipeline will provide Bulgarian consumers with continuous and uninterrupted natural gas supplies over a long term,” said Alexey Miller.

Background

In 2011 Gazprom supplied Bulgaria with 2.81 billion cubic meters of gas.

With a view to diversify 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.

In July 2010 Russia and Bulgaria inked the Roadmap to perform the feasibility study for the Bulgarian section of the South Stream project. In pursuance of the Roadmap, on October 25, 2010 Gazprom and Bulgarian Energy Holding signed the Agreement on the feasibility study for the Bulgarian section of the South Stream project.

On November 13, 2010 Gazprom and Bulgarian Energy Holding signed the Shareholders Agreement and the Articles of Association for the South Stream Bulgaria joint project company established on a parity basis for the South Stream project implementation in Bulgaria. The joint project company was incorporated in December 2010.

On December 2, 2011 the South Stream gas pipeline was granted the national status by the Bulgarian Council of Ministers.

On December 16, 2011 Gazprom and Bulgarian Energy Holding completed the legal procedures related to the feasibility study prepared by the contractor for the Bulgarian section of the South Stream gas pipeline.

On April 19, 2012 the Shareholders Meeting of South Stream Bulgaria approved an agreement with the contractor on spatial planning, environmental impact assessment and project documents compilation for the Bulgarian section of the South Stream gas pipeline.

On August 27, 2012 Gazprom and Bulgarian Energy Holding signed a protocol on the South Stream project implementation in the Republic of Bulgaria. The document defines the point of the gas pipeline entry into the Bulgarian gas transmission system, the gas pipeline parameters and further steps in the project implementation.

Bulgargaz is a wholly-owned subsidiary of Bulgarian Energy Holding.