Greece Helps Russia Build Pipeline

Athens and Moscow signed a deal to create a joint venture to help Russia build its South Stream gas pipeline.
Greece Helps Russia Build Pipeline
6/7/2010
Updated:
6/7/2010
Athens and Moscow signed a deal on Monday to create a joint venture to help Russia build its South Stream gas pipeline passing through Greek territory to other European countries. The deal is the next development in Russia’s effort to build its ambitious gas project.

Officials said that both sides would have equal shares in creating a joint venture. The estimated figure for building is 1 billion euro ($1.2 billion).

Russia is going to transport the gas under the Black Sea to Bulgaria, Hungary, Austria, Greece, Italy, and other countries. Moscow plans to create similar joint ventures with all participants. Currently, it has such ventures signed with Hungary and Serbia.

Moscow decided to build the pipeline after the gas conflict between Ukraine and Russia in January 2009 that left several Eastern European countries without gas transports for two weeks.

The South Stream pipeline is slated to be operational in 2015. Russia plans to deliver 35 percent of all of Europe’s gas supply.