Russia and Greece signed on Tuesday an intergovernmental agreement on cooperation in the construction and operation of the Greek section of the South Stream gas pipeline, the Kremlin press service said.

The deal was signed by the Russian industry and energy minister and the Greek development minister after talks between Russian President Vladimir Putin and Greek Prime Minister Kostas Karamanlis.

"The fulfillment of the large projects with due account of interests of energy producers, transit countries and clients will ensure a high degree of energy security on the European continent," the Kremlin said.

The Greek section of the South Stream gas pipeline will have an estimated capacity of 10 billion cubic meters of natural gas a year, RIA Novosti quoted the Russian industry and energy minister as saying.

The South Stream is a joint project of Russian gas monopoly Gazprom and Italian energy giant Eni, which implies the deliveries of Russian and, possibly, Central Asian gas to Europe across the Black Sea.

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