RIA Novosti reported that Russian energy giant Gazprom and Hungary are set to sign an agreement later this month clearing way for building the South Stream gas pipeline across the Central European state.

Mr Viktor Zubkov Russian First Deputy Prime Minister who heads the Gazprom board of directors, will visit the country on January 29th and attend the signing of an agreement on a joint venture to oversee the construction of the Hungarian section of the pipeline, which is planned to pump 31 billion cubic meters of gas from Russia to Europe, bypassing Ukraine.

Mr Zubkov spokesman said the agreement will be the last in a series of organizational documents needed to begin the construction of the ambitious pipeline which is part of Russian efforts to diversify energy supply routes cutting dependence on current transit nations.

South Stream to be laid on the Black Sea floor and run across Bulgaria, Serbia, Hungary, Italy and Greece is a rival project to the EU-backed Nabucco pipeline, which would bypass Russia.

Gazprom reportedly plans to inaugurate South Stream, whose capacity could eventually be increased to 63 billion cubic meters in late 2015.

(Sourced from RIA Novosti)