Russia and Italy have signed a deal that will allow the French electricity giant EDF into the proposed South Stream gas pipeline under the Black Sea. It will also ensure all European citizens have a secure supply of gas.
The deal was among a raft of agreements signed between Russian and Italian companies as Italian Prime Minister Silvio Berlusconi and Russian President Dmitry Medvedev met on Thursday in Rome.
The South Stream Pipeline would link Russia to southeastern Europe, dealing a blow to the Nabucco pipeline, which is supported by the US and the EU.
Berlusconi says the purpose of the deal was not to compete with Nabucco.
Silvio Berlusconi, Italian Prime Minister, said, "This project will guarantee to the whole of Europe - particularly the Balkans, but Italy as well - a continuity of gas supply from Siberia. It does not compete with any other pipeline."
During the joint news conference, Berlusconi also announced a deal that would allow an Italian company to make tires in Russia as part of a joint venture.