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South Stream deal 'on the table'

Russia's Gazprom and Italy's Eni will move ahead with their plan to build the South Stream pipeline to supply Russian gas to Europe by signing a new deal tomorrow, industry sources have claimed.

Sources close to both Gazprom and Eni told Reuters the deal would be signed within the framework of Italian Prime Minister Romano Prodi's visit to Russia for talks with President Vladimir Putin.

In June, Gazprom and Eni unveiled a preliminary plan to build a 900 kilometre (560 mile) South Stream link, which would start in Russia, traverse the Black Sea, come ashore in Bulgaria and then go to Austria, Slovenia and Italy.

Many analysts have interpreted the plan as another attempt by Gazprom to undermine a rival plan by Azerbaijan to supply southern Europe via the territory of Turkey through the proposed Nabucco pipeline.

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