Pipeline secured as Gazprom snaps up Serbian gas company
The South Stream pipeline will be a new gas delivery route to Western Europe.
Belgrade agreed to the deal on Tuesday, allowing Gazprom to buy a controlling 51 per cent stake in Serbia's major oil and gas company NIS.
The agreement also allows Russia to build a huge underground gas storage facility in the north of Serbia.
Serbian Foreign Minister Vuk Jeremic believes the deal secures long-term energy stability in the Balkans.