Russian Gazprom and Austrian OMV signed on Tuesday a memorandum of understanding to build the Austrian section of the South Stream gas pipeline.

The Memorandum was inked at the headquarters of OAO Gazprom at a working meeting between the Chairman of the Management Committee Alexey Miller and the OMV Chairman of the Executive Board, CEO Gerhard Roiss.

Under the Memorandum, as much as 32 billion cubic meters of gas a year are to be delivered to Baumgarten, Austria, the end point of the conduit, according to a media statement of OMV.

The Austrian energy company expects to have obtained all the permits necessary for the construction of the pipeline by end-2015, adding that the first gas deliveries are expected in 2017 and the full commissioning of the Austrian section of the gas pipeline has been scheduled by January 2018.

Under the agreement, the Austrian section of South Stream will run from the Bulgarian Black Sea coast to Baumgarten, crossing Serbia and Hungary on its way.

"The need for construction and the benefits of South Stream Project for Europe are patent. South Stream Project is aimed at enhancing energy security of the European consumers, which has always been regarded as the top priority for ОАО Gazprom. It is noteworthy that Gazprom and OMV have already established a solid international law basis for the implementation of this project – an intergovernmental  agreement between Russia and Austria signed in April 2010", Alexey Miller said after the meeting.

OMV CEO Gerhard Roiss noted that the Memorandum was an important step towards boosting the security of gas supply in Austria, adding that it would further strengthen Baumgarten's role as key hub for gas in Central and Eastern Europe.

Gerhard Roiss also handed Alexey Miller a letter expressing the support of Austrian Economy Minister Reinhold Mitterlehner for the efforts of the parties on the implementation of the Austrian section of the South Stream gas pipeline.

On the same day, the EU imposed asset freezes and travel bans on 15 Russians and Ukrainians, including Deputy Prime Minister Dmitry Nikolayevich Kozak, over Moscow's actions in Ukraine.

Following the move, the list of people under EU sanctions for actions seen to have undermined Ukraine's territorial integrity was expanded to a total of 48.