Russia, supplier of a quarter of Europe's gas, signed a pipeline agreement with Italy today that will give the Kremlin more control over the continent's energy market.
OAO Gazprom, Russia's gas exporter, and Italy's Eni SpA agreed to form the operating company for a 10 billion-euro ($14.8 billion) link from Russia to Europe via the Black Sea. The deal was signed in the Kremlin during Italian Prime Minister Romano Prodi's visit with President Vladimir Putin, Gazprom said in an e-mailed statement.

“We're using this opportunity to get a political blessing,” Eni Chief Executive Officer Paolo Scaroni told reporters. “Pipelines in general, and South Stream in particular, are such a significant infrastructure investment that they raise political attention.”

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