France to join construction of Južni Tok

- French power supply company "EdF" and Russian "Gazprom" has signed the Agreement on engagement of the French company in construction of gas pipeline Južni Tok - Vladimir Putin, the Prime Minister of Russia, confirmed on Friday (November 27, 2009), during his two-day stay in France.

Putin also reached the agreement with his host Francois Fillon, the Prime Minister of France, in Rambouillet, near Paris, on cooperation between automobile companies "Renault" and ""Avtovaz".

- We finally put an end to the agreements between "EdF" and "Gazprom" concerning the involvement of the French company in large international transportation project - construction of gas pipeline system Južni Tok on the bottom of the Black Sea - Putin said at the 14th meeting of Russian-French Cooperation Committee.

According to the words of Russian Prime Minister, the agreement was also reached on joint works on the territory of France, as well as on the territories of the third countries.

- This is the new quality of cooperation - exchange of assets - said Putin, adding that, in the previous years, Russia had such cooperation only with German partners.

The share of "EdF" in the consortium for Južni Tok should amount to nearly 10% in exchange for signing of long-term contracts for delivery of gas to the power plants of the company alongside the route of the gas pipeline.

The project for construction of gas pipeline Južni Tok, with the capacity of up to 63 billion cubic meters of gas per year, is being implemented by "Gazprom" and Italian power company "Eni". The gas pipeline should reduce dependence of Russian "Gazprom" and gas consumers in Europe on transit countries, Ukraine in particular, which has been quite unreliable partner over the last few years.