RIA Novosti reported that an intergovernmental agreement between Russia and Romania on cooperation in the construction of the South Stream gas pipeline may be signed in the first quarter of 2011.

Gazprom said in a statement that it had signed a memorandum of mutual understanding with Romania Transgas S.A to establish a joint group of experts, who will conduct a technical and economic assessment of the pipeline construction in Romania.

The statement said "If the results of the assessment are positive, Gazprom and Transgas will suggest signing a Russian-Romanian intergovernmental agreement on cooperation in the South Stream project in the first quarter of 2011. The agreement will be the political, international and legal basis for further development of the project in Romania."

The statement said if the intergovernmental agreement is signed, the companies will try to sign a similar agreement at a corporate level as soon as possible.

The Russian government has signed intergovernmental agreements with Bulgaria, Serbia, Hungary, Greece, Slovenia, Croatia and Austria on the implementation of the land phase of the South Stream project.

(Sourced from RIA Novosti)