Gazprom, Greek DESFA sign deal on South Stream joint venture

Russian gas giant Gazprom and Greece’s grid operator DESFA signed a deal on Monday to build the Greek section of a Russian-led gas pipeline project known as South Stream, the companies said.

Under the deal signed in Moscow, the two companies formed an equally-owned joint venture which will be in charge of “designing, financing, constructing and maintaining the gas pipeline in Greece,” the companies said in a joint statement.

Developed by Gazprom with Italy’s Eni, the South Stream project is seen as crucial to Russia’s efforts to retain its domination of gas supplies to the European continent.

Greece joined the South Stream project in 2008.

South Stream is a rival to the EU-backed Nabucco pipeline, which is aimed at reducing the member countries’ dependence on Russian supplies.