Hungary and Russia founded a joint venture for the preparatory work of the South Stream natural gas pipeline, Hungary Finance Minister Peter Oszko said Friday.
"Signing the documents indicates that Hungary is committed to the South Stream project," Oszko said.
"The diversification of Hungary's energy supplies is essential, this project is one step toward this diversification," Oszko added at a press conference after Hungarian Prime Minister Gordon Bajnai and Russian Deputy Prime Minister Victor Zubkov signed the foundation documents of the project company Deli Aramlat Magyarorszag Zrt.
Through the South Stream pipeline, Hungary would receive natural gas from Russia through Romania and Bulgaria. Transport will be guaranteed by Gazprom's audited reserves.
Hungary is heavily dependent on imported gas, which has made it particularly vulnerable when Russian-Ukrainian disputes interrupted the flow of gas.
Gas is the source of 40% of Hungary's total energy supply, and 80% of that gas is imported from Russia through Ukraine.