FX.co ★ OMV and Gazprom sign agreement on Austrian leg of South Stream

It has become known that Russia’s gas giant Gazprom and OMV AG signed an agreement for the implementation of the project of the Austrian section of South Stream. OMV CEO Gerhard Roiss and Gazprom CEO Aleksei Miller signed the final deal to build the branch of the gas pipeline ending in Austria. The agreement determines key principles of cooperation on the project, the rights and obligations of shareholders as well as the funding terms and subsequent distribution of profits.
For context, last spring Gazprom and OMV signed the memorandum of understanding that foresaw building a section of the giant pipeline with a capacity to ship 32 billion cubic meters of gas a year. Moreover, under the memorandum, Gazprom is to take part in the Central European Gas Hub (CEGH) and have access to underground gas storage facilities owned by OMV.
Austria’s representatives think that South Stream should be an exception from the new EU’s rules for gas transportation companies.
OMV CEO highlighted that EU’s government should negotiate the special terms with Gazprom and not roll back negotiations, but add momentum to the process instead.
Austrians seem to be forward-looking and realize there is not much time left before winter with Europe might lack the Russian gas.
Austrian politicians also support businessmen in the matter. Thus, recently, Austria's Foreign Minister Sebastian Kurz said the country is interested in the implementation of the project. "We need not only more suppliers, but also more variety in the routes that energy can flow to us," he told reporters adding that that at least five EU countries strongly supported it.