Hungary has become the latest partner to join Russia in the multibillion-dollar South Stream pipeline project. Hungarian Prime Minister and Russia's President signed the major deal at a meeting in Moscow on Thursday.
Other countries already involved in South Stream include Italy and Bulgaria and most recently, Serbia. The pipeline will link Russia to the EU, bypassing Ukraine, and running from Russia's Black Sea coast under the sea to Bulgaria. From there it will branch off to different destinations in the European Union, carrying 30 billion cubic meters of gas a year. The Hungarian section will be built by a 50:50 joint venture with Gazprom – at a cost of $US two billion. The project also includes underground gas storage in Hungary. Hungary will receive not only gas but also transit fees. From there, the South Stream pipeline will continue to Austria.