Russia and Greece signed a deal for a section of the so-called Turkish Stream gas pipeline on Friday, Russian media has reported.

The deal was signed between energy ministers Alexander Novak of Russia and Panagiotis Lafazanis of Greece, for a pipeline with a capacity of 47 billion cubic meters a year.

Construction of the Greek section of the Turkish Stream pipeline will start in 2016 and be completed by 2019. The two countries will have equal shares in the company, Novak was quoted by RT as saying at International Economic Forum in St. on Friday.

Novak said Russia will initially finance the construction of the pipeline, according to Sputnik.

"Our meeting today is a historical meeting... The memorandum expresses the readiness of both sides to bring the south direction of the pipeline to implementation," Lafazanis said.