Greece joined the Russian-Italian South Stream yesterday. An agreement was signed on the construction of a section of the pipeline across Greece with a capacity of 10 billion cu. m. of natural gas per year. Russian Ministerof Industry and Energy Viktor Khristenko and Greek Minister of Development Christos Folias signed the agreement in the presence of Russian President Vladimir Putin and Italian Prime Minister and Greek Prime Minister Kostas Karamanlis.
Gazprom was forced to promise Greece a long-term contract for gas delivery with growing volume through 2013. Athens also retained the right to diversify its supplies with gas from Algeria and Turkey. Similarly to the agreements reached with Hungary and Bulgaria, Gazprom will form a joint venture with the Greek company DEPA to participate in South Stream. The agreement foresees tax benefits until the recoupment of the investment in the pipeline.
The South Stream pipeline will stretch from Russia to Italy with a 30-billion cu. m. capacity. It is to be completed by 2013. It will run for 900 km. under the Caspian Sea and branch out in Bulgaria, with one line leading to Greece and onward to the Italian city of Brindisi, and another line running through Serbia, Hungary and Austria or Slovenia to northern Italy. Putin acknowledged yesterday that the Greek prime minister “is a strict negotiator.” Greece receives 90 percent of its natural gas and 30 percent of its oil from Russia.
Source: The Moscow Times
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