Russia & Italy sign pipeline accord

Russia's gas giant, Gazprom, and Italy's Eni have signed an agreement on the construction of a new gas pipeline to Europe. Called South Stream, it will pass from Russia to Bulgaria across the Black Sea.

It's estimated that the pipeline's annual capacity will be 30 BLN cubic metres of gas.

According Gazprom's Deputy CEO, Aleksandr Medvedev, the project is aimed at diversifying gas supplies routes from Russia to Europe and is contributing to Europe's energy security.