Led by Vlada Rusakova, Member of the Gazprom Management Committee, Head of the Department of Strategic Development, a Gazprom delegation paid a working visit today to the Republic of Hungary.

During the visit, Vlada Rusakova met with Janos Eros, President of the Hungarian Development Bank MFB to discuss the arrangement of activities within preparation of the Feasibility Study for the construction of the South Streamgas pipeline section in Hungary.

The Feasibility Study will be an integral part of the comprehensive Feasibility Study for the entire South Stream project embracing the territory of Russia, the Black Sea and the countries of Central and Southern Europe.

In the course of the negotiations, the parties coordinated the list of benchmarks and the work schedule, as well as considered various routes of natural gas transmission across Hungary.

The parties agreed to hold the next meeting in Moscow.

Background:

First Russian natural gas was delivered to Hungary in 1975. Gazprom provides around 70 per cent of Hungary’s total natural gas imports. In 2007 Gazprom exportsupplied some 7.5 bcm of gas to Hungary. At present, Hungary transits Russian gas to Serbia, Montenegro and Bosnia.

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

The total length of the Black Sea gas pipeline section will be around 900 km, the total depth – over 2,000 m, the design capacity – nearly 31 bcm. The South Stream offshore section is slated for commissioning in 2013.

In February 2008, Russia and Hungary signed the Intergovernmental Agreement envisaging Hungary’s engagement into the South Stream gas transmission system project.