AFP - Austria has begun talks with Russia in view of joining Moscow's South Stream gas pipeline project, Austrian newspapers reported on Saturday.

The economy ministry said it had opened negotiations with Russia on Friday regarding its potential involvement in the project, the daily Die Presse reported.

South Stream is seen as a rival to the EU's Nabucco pipeline, aimed at reducing Europe's dependence on Russian gas.

Both projects, which have yet to be completed, would terminate in Austria, from which gas would then be supplied to the rest of Europe.

The Austria Press Agency (APA) noted that the two countries would first have to sign an "intergovernmental agreement" before Austrian oil and gas group OMV could begin direct negotiations with Russia's gas monopoly Gazprom.

No deadline has been set for the talks, APA added.

Chancellor Werner Faymann already discussed Austria's involvement in South Stream with Russian Prime Minister Vladimir Putin during a recent trip to Moscow.

The project, backed by Gazprom and Italy's ENI, is scheduled for completion by the end of 2015, bringing Russian gas under the Black Sea to Bulgaria, before branching off to Austria or Greece.

The 7.9-billion-euro (11.6-billion-dollar) Nabucco pipeline project, scheduled to start in 2014, is meanwhile due to pump Caspian gas to Europe via Turkey, while bypassing Russia.