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EDF will take at least 10% of South Stream gas pipeline

EDF pledged Saturday to take a stake of at least 10% in the South Stream pipeline by the end of 2010 through a reduced participation of the Italian group Eni.

The public company has also signed an agreement for cooperation in the nuclear field with the Russian Rosatom public group.

These signatures are part of a series of agreements between Paris and Moscow at the World Economic Forum in St. Petersburg that France is the guest of honor.

By providing for the repurchase of at least 10% of South Stream, EDF strengthens its position in the natural gas market.

The pipeline must refuel countries of southern Europe and Central Europe via the Black Sea.

"The feasibility studies of the underwater section has begun, we can say we have never been so close to starting construction," said Gazprom CEO Alexei Miller said in a statement.

Russian Prime Minister Vladimir Putin said in April that EDF would take 20% of South Stream.

Asked if this could be the case, Alexei Miller, said: "Perhaps, perhaps.It will be at least 10%. "

This agreement allows EDF to 'take a major step in its strategy to secure its gas supplies, both to feed its own means of electricity production and marketing of natural gas deals with its customers "said CEO Henri Proglio in a statement.

The World Economic Forum in St. Petersburg was also an opportunity for EDF to enter into partnership with the Russian nuclear company Rosatom on "research and development, nuclear fuel and nuclear cooperation currently existing or under construction.

"The agreement also provides that the two groups cooperate through exchange of experience and training, including in particular visits to industrial sites in both countries," says EDF.

Rosatom is a direct competitor of the French nuclear group Areva.