Today Gazprom Headquarters has hosted a working meeting between Alexey Miller, Chairman of Gazprom Management Committee and Paolo Scaroni, Chief Executive Officer of ENI Company.

The parties discussed basic principles and terms on Cooperation Agreement for the whole chain from production to sales of oil, gas and electrical power as well as LNG.

Alexey Miller and Paolo Scaroni expressed common opinion to sign the Agreement not later than October15, 2006.

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Italian natural gas market is the third largest market in Europe after the United Kingdom and Germany. The Italian energy balance gas share is more than 30 per cent. In 2005 Italy met some 86 per cent of natural gas needs from gas import. Russia and Algeria are the main gas importers.

Italy is the second largest importer of Russian gas in Europe. Gazprom supply gas to Italy under five long-term contracts. In 2005 the amount of gas deliveries reached 21.7 bcm of gas.

In February 1998 Gazprom and ENI signed an Agreement on strategic alliance. In the framework of the Agreement, the companies participate in the Blue Stream draft program implementation (gas main development for direct Russian gas deliveries to Turkey through the offshore section of the Black Sea). Gazprom together with ENI created a joint venture Blue Stream Pipeline Company to provide financing, pipeline construction and its operating. Blue Stream was launched in February 2003. In 2005 Turkey received 5 bcm of gas via the Blue Stream Pipeline.