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Putin and Prodi seal deal on the South Stream gas pipeline

Russian President Vladimir Putin welcomed Italian Prime Minister Romano Prodi to Moscow to discuss a number of trade issues including the construction of a major new gas pipeline from Russia to Southern Europe.
As it stands the demand for gas in the European Union continues to rise while at the same time internal gas production is in decline.
The South Stream project is to be a joint venture between Russia's Gazprom and Italy's energy giant ENI.
The project due to begin construction in 2008/9 will transport some 30 billion cubic meters of gas under the Black Sea from Russia to Bulgaria from there it will branch North and South.
The move will do nothing to ease European fears that it is becoming too dependent on Russia for energy, recent disruptions of supplies from Russia to Ukraine a case in point.

euronews


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