The South Stream Project is making good progress and enters an important next phase. Following a recent Board Meeting, South Stream Transport has initiated two tenders, one for the supply of line pipe and another one for the construction of the South Stream Offshore Pipeline through the Black Sea. Construction of the first 930-kilometre offshore pipeline is to start in 2014.

Simultaneously, work is progressing on the development of the onshore sections in a range of countries in South-Eastern Europe, through several national joint venture companies. This too is a major component of the work on the overall South Stream Pipeline System.

In light of the requirements of this next phase, the Shareholders of South Stream Transport B.V. appoint Dr. Oleg Aksyutin as the Chief Executive Officer, Executive Member of the Board of Directors of the offshore pipeline project company South Stream Transport B.V. in Amsterdam, as per 1 July 2013. Dr. Aksyutin, who has vast technical experience in the construction and operation of natural gas pipelines, is to remain a Member of the Management Committee, Head of the Gas Transportation, Underground Storage and Utilization Department of OAO Gazprom.

The Board takes note of the appointment by OAO Gazprom of Marcel Kramer as Advisor to Gazprom Management on the same date. Mr. Kramer will deal with general matters in respect of the South Stream Project and is to be involved in the dialogue with the European institutions. The Board thanks Mr. Kramer for his contribution to the implementation of the offshore pipeline project.

Press Release, July 5, 2013