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Russia says near S.Stream deal with Austria, Slovenia

Published: 22 May 2009 01:45:35 PST

* Deal at "advanced level of preparation"

* Wants EU to make South Stream a priority project

KHABAROVSK, Russia, May 22 - Russia is close to securing Austrian and Slovenian participation in its South Stream pipeline to supply gas to Europe, Energy Minister Sergei Shmatko said on Friday. Russia also wants to make South Stream a "priority project" for the European Union, Shmatko told reporters following an EU-Russia summit in the far eastern city of Khabarovsk.

"In the last two or three weeks, we've held a series of negotiations with Austrian and Slovenian partners about an intergovernmental agreement," Shmatko told reporters.

"This document is at an advanced level of preparation."

Russia last week secured support for its South Stream project from Italy, Bulgaria, Greece and Serbia. Moscow wants to outpace the rival, Western-backed Nabucco pipeline, which would supply gas from sources other than Russia.

Shmatko said Russia and its European partners in the project would request that Brussels grant it priority status.

"We agreed with EU Energy Commissioner Andris Piebalgs that Russia once more, together with its European partners in the project, would prepare a circular for the European Commission about affording the project such status," Shmatko said.


Source: Reuters

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