Gazprom Chief Executive Officer Alexei Miller met with Eni CEO Paolo Scaroni in Moscow. Gazprom, in a statement, said the companies agreed to adjust terms and conditions for Russian natural gas supplies to Italy.
"The agreement on the revision of the price of the gas supply contracts represents an important step in the 40-year-long strategic partnership between Gazprom and Eni," the Italian company added. "Gazprom and Eni further consolidate their commercial relationship, contributing to the competiveness of Russian gas in the European market and helping to strengthen security of supply."
Neither company offered specifics about the revised gas supply contract.
Construction on South Stream is scheduled to start in December. The pipeline would split with arteries headed to southern Europe after passing through Turkish waters of the Black Sea.
Gazprom meets about one-quarter of Europe's natural gas needs, though 80 percent of that runs through Soviet-era transit networks in Ukraine.
Gazprom and Eni announced the initial aspects of South Stream in 2007.