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10 February 2014, Sofia (Bulgaria). The Bulgarian Ministry of Environment and Water published the approval of the investment proposal for the South Stream Offshore Pipeline. This follows the Supreme Expert Environmental Council’s positive decision on the Environmental Impact Assessment Report (EIA Report) of the South Stream Offshore Pipeline in Bulgaria, taken on 24 January 2014. The EIA Report concludes that the environment will not be significantly affected by the Project. “We take our environmental and social responsibility very seriously and we undertook a thorough impact assessment to ensure the pipeline will not harm the environment. The EIA Report reflects this clearly and I am pleased that our efforts were appreciated by the experts of the Supreme Expert Environmental Council”, commented Oleg Aksyutin, CEO of South Stream Transport B.V. The EIA Report contains the findings of the environmental, cultural heritage and socio-economic studies for the construction and operation of the Bulgarian Sector of the South Stream Offshore Pipeline, conducted by a team of Bulgarian and international experts. The report describes the potential impact of the Project and contains over 200 protection measures that South Stream Transport will implement to ensure that the Project will not have any significant adverse impacts. Feedback from the community considered During the development of the EIA, South Stream Transport held two rounds of consultation meetings. In February 2013, consultations were held to discuss the scope and preliminary results of the environmental impact assessment. The feedback gathered during these meetings, along with feedback from ongoing consultation with stakeholders during 2013, was considered in the development of the EIA Report and led to a decision to use an alternative construction method to cross under Pasha Dere Beach near Varna.

Press Release

Bulgarian Environmental Impact Assessment (EIA) approved for the South Stream Offshore Pipeline

• Bulgarian Minister of Environment and Water approves EIA Report following decision of the Supreme Expert Environmental Council

• EIA Report includes local community feedback expressed during public consultation process

• South Stream Offshore Pipeline will not have a significant impact on the environment

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Rather than burying the pipeline under the beach, four micro-tunnels will be used to install the pipelines deep underground. The tunnels will pass approximately 20 metres below the beach, without any construction or digging works taking place on the shoreline, and ensuring that public access to the beach will be maintained. A second round of consultations was held in December 2013, when public hearings were held on the EIA Report in Varna and Priseltsi (Avren). Questions and comments received during this period were documented, and responses were provided to the Ministry of Environment and Water and the relevant local municipalities. This feedback will also be considered in the ongoing design and implementation of the South Stream Offshore Pipeline. Following the positive decision of the Bulgarian Ministry of Environment and Water, South Stream Transport is seeking to complete the next stages of permitting to receive all the required construction permits in time to start construction in the middle of 2014. Contact: Nina Mircheva, Communications Manager Bulgaria E-mail: media@south-stream-transport.com Phone: +359 885 78 78 35 Notes to editors: The South   Stream   Offshore   Pipeline   through the Black Sea is the offshore component of the South  Stream  Pipeline  System  which will increase the security of supply of natural gas from Russia to Central and South-Eastern Europe as it creates a new supply route and provides additional transport capacity. The South Stream Offshore Pipeline will have a length of 931 km, originating from the Russian Black Sea shore in the area of Anapa, cross the Turkish Exclusive Economic Zone in the Black Sea and land on the Bulgarian coast near Varna. The   Bulgarian   Sector   of   the   Project  will be approximately 236 km in length. It runs from the border between the Turkish and the Bulgarian Exclusive Economic Zone in the Black Sea, to the landfall in Bulgaria. From there, natural gas will be transported through the country by South Stream Bulgaria AD and further by other joint ventures into South-Eastern and Central Europe. Commercial operations are scheduled to start by the end of 2015. When fully operational, the South Stream Offshore Pipeline will consist of four pipeline strings and reach an annual capacity of 63 billion cubic metres. South Stream Transport B.V. is an international joint venture established for the planning, construction and subsequent operation of the offshore gas pipeline through the Black Sea. Stakeholders of the company are the Russian company Gazprom (50% stake), the Italian company Eni (20% stake) and the French energy company EDF and the German company Wintershall Holding GmbH, each holding 15%. For further information, please visit: www.south-stream-offshore.com.