Reuters: OMV and Gazprom press on with Austrian branch of South Stream gas pipeline

Russia's Gazprom and Austria's OMV said on Tuesday that they had signed a memorandum of understanding to build a spur of the South Stream gas pipeline to Austria, despite Western sanctions against Moscow over Ukraine.

The pipeline is designed to carry Russian gas to Europe, bypassing Ukraine - through which existing pipelines carry nearly half the gas that Europe buys from Russia. The project faces stiff resistance from some EU and U.S. officials, who want Europe to reduce its reliance on Russian energy.

U.S. and EU sanctions imposed on Russia over its annexation of Ukraine and subsequent actions have so far been limited to asset freezes and travel bans on individuals and companies closely linked to Russian President Vladimir Putin or to Russia's annexation of Crimea, and on pro-Russian separatist rebels in eastern Ukraine.
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