Russian Prime Minister Vladimir Putin paid a visit to Vienna on Saturday, during which an intergovernmental agreement on Austria's joining the Russian-backed South Stream natural gas pipeline project was signed.

The agreement signed by government and energy officials of the two countries allows Russia to lead its planned South Stream pipeline into Austria. From there, it can reach other European countries.

"Russia can supply Europe with gas for the next 100 years,” Putin said as he addressed a news conference in Vienna on Saturday following his talks with the Austrian Chancellor Werner Faymann.

Putin said he sees the supplies as stable and reliable and said they will do a lot to ensure the energy security of Europe.

South Stream is a joint venture of Russia's Gazprom and Italy's Eni. It will exit Russia under the Black Sea and enter the European Union via Bulgaria to carry 63 billion cubic meters of gas a year.

The gas line is scheduled to be completed by 2015. With it Russia aims at eliminating dependence from transit countries.

Serbia, Hungary, Slovenia, Bulgaria, Greece, Italy and Croatia are also signed onto the deal.

Austria is also a supporter of the Nabucco pipeline that would provide a supply of gas not subject to Russian control.

Representatives of Italy's Eni have recently suggested that the rivaling gas pipeline projects in southern Europe, South Stream and Nabucco, should combine to cut costs.

“What we have here is what bankers call a strategic fit,” Eni SpA Chief Executive Officer Paolo Scaroni said in march.

“Should all partners decide to merge the two pipelines for part of the route, we would reduce investments, operational costs and increase overall returns.”

Eni is an equal partner in South Stream with OAO Gazprom, the world’s largest producer of gas. Nabucco shareholders include Austria’s OMV AG and Germany’s RWE AG.

The planned route of the two projects passes through Bulgaria.

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