Led by Alexey Miller, Chairman of the Company's Management Committee, a Gazprom delegation made today a business trip to the Republic of Hungary.

During the visit a meeting was held with Viktor Orban, Prime Minister of Hungary.

The parties reviewed the progress with the South Stream gas pipeline project, highlighting its strict compliance with the schedule. A focus was placed on the issues of granting the national significance status to the project.

Alexey Miller and Viktor Orban stressed that the South Stream implementation was of great value and immediacy, and that the project served the strategic interests of both countries as well as the European region in general.

Background

In 2011 Gazprom export supplied Hungary with around 6.26 billion cubic meters of gas.

With a view to diversify the 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.

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

On March 10, 2009 Gazprom and Magyar Fejlesztesi Bank (MFB) signed the Basic Cooperation Agreement to construct a gas pipeline and transit natural gas through the Republic of Hungary as part of the South Stream project.

On January 29, 2010 Gazprom and MFB created the South Stream Hungary Zrt joint project company.

In October 2011 the Hungarian Government made a decision to replace the accredited company responsible for the South Stream project implementation in the country. MVM Zrt. (Hungarian Power Companies) will become a new contractor.