In the presence of the Russian Prime Minister Vladimir Putin and the Prime Minister of France François Fillon, the Russian National Exhibition “Russia and France – a single economic and humanitarian space”, which is dedicated to the year of Russia in France was opened today in Paris. The event was attended by a delegation of Gazprom headed by Alexey Miller, Chairman of the Gazprom Management Committee. During the visit, Alexey Miller met with Henri Proglio, CEO of EDF.

The parties discussed the basic principles for the company EDF becoming a shareholder in South Stream AG.

In addition, Alexey Miller informed his French counterpart about the outcome of feasibility study for the offshore portion of the South Stream. The parties expressed their common view that the pipeline is extremely important in ensuring guaranteed energy supplies to European consumers.

Background:

For the purpose of diversifying export routes of natural gas supply OAO Gazprom plans to construct a gas pipeline running under the Black Sea to the countries of the South and Central Europe: the South Stream project.

On June 23, 2007 Gazprom and Eni signed the Memorandum of Understanding on the implementation of the South Stream project The Memorandum specifies areas of cooperation between the two companies in  the designing, financing, construction and management of the South Stream.

On January 18, 2008 the special-purpose company South Stream AG was registered in Switzerland. The founders of the company, on a parity basis, are Gazprom and Eni.

On May 15, 2009 Gazprom and Eni signed the second Addendum to the Memorandum of Understanding between Gazprom and Eni of  June 23, 2007 on further steps in the implementation of the South Stream project. The Addendum provides for an increase in the capacity of the offshore section of the South Stream gas pipeline from 31 to 63 billion cubic meters per year and governs gas sales insofar as the project is concerned.

On November 27, 2009 Gazprom and EDF signed a Memorandum of understanding on the possibility of EDF participating in the construction of the offshore section of the South Stream pipeline.

On December 3, 2009 Gazprom and ENI signed a Memorandum of Understanding on the South Stream project. The Memorandum fixes Gazprom and Eni support to EDF accession to the South Stream project.

The EDF Group, one of the leaders in the energy market in Europe, is an integrated energy company active in all businesses: generation, transmission, distribution, energy supply and trading. The Group is the leading electricity producer in Europe. In France, it has mainly nuclear and hydraulic production facilities where 95% of the electricity output involves no CO2 emissions. EDF’s transport and distribution subsidiaries in France operate 1,285,000 km of low and medium voltage overhead and underground electricity lines and around 100,000 km of high and very high voltage networks. The Group is involved in  supplying energy and services to around 38 million customers around the world, including close to 28 million in France. The Group generated consolidated sales of €66.3 billion in 2009, of  which 49% in Europe excluding France. EDF is listed on the Paris Stock Exchange and is a member of the CAC 40 index.