The $14.65 billion South Stream project signed in 2007 by Gazprom (50%) and Italy’s Eni (50%) is designed to carry mostly Central Asian gas to Western Europe at a capacity of up to 30 bcm/year. Construction is due to take at least four years and is expected to begin in 2008-2009. This pipeline could have far reaching consequences to both gas producing countries and transit states. It could largely parallel the Nabucco project (the Nabucco pipeline is a project intended to diversify gas supplies to Europe) through southern and central Europe and since the latter has no throughput volumes yet confirmed (with the exception of Bulgaria that signed an agreement to purchase 1 bcm of gas per annum from Azerbaijan), Russia is in an ideal position to pressure the target Caspian countries to make sure they comply with Russian plans. The pipeline is especially being constructed to help Russia reduce its dependence on transit countries including Ukraine and Turkey for its gas destined for European markets.