EDF May Take 10% Stake in Russia’s South Stream

EDF Energy, France’s utility giant, is looking to secure a 10 percent stake in South Stream pipeline, a Russian Gazprom project. The stake would give France a hand in Russian gas being exported to Europe.

Reports have indicated that EDF and Gazprom are close to signing a memorandum of understanding which would see the French company taking over 10 percent in holdings in Gazprom. According to reports, Russian Prime Minister Vladimir Putin met with French Prime Minister Francois Fillon to discuss several projects on Monday.

A spokesman for PM Vladimir Putin said that the topic of EDF and Gazprom was discussed and constructive, however no details were disclosed. 

The South Stream project is scheduled to be constructed underneath the Black Sea and will operate in competition with the joint EU and U.S. funded Nabucoo pipeline. The Nabucco pipeline was proposed as a way to decrease Europe’s dependency on Russian gas by piping in gas from the Caspian Sea. 

Currently Russia supplies one quarter of Europe’s total natural gas supply, and Russian companies are quickly trying to establish more pipelines in order to supply natural gas to Europe via bypassing the Ukraine after tension has built in Kiev over transit payments over the last couple of years.

Neither EDF or Gazprom have commented or released details on the deal. A second French company, GDF Suez, is also reported to be considering taking a nine percent stake in the Nord Stream, a similar Russian pipeline which would supply natural gas to Germany via underneath the Baltic Sea.