Russia Ratifies Balkan Pipeline Pact with Bulgaria and Greece

The Russian government has ratified an agreement with Bulgaria and Greece for a EUR1 billion project to build the Burgas-Alexandroupolis oil pipeline say the Russian news agency RIA-Novosti. The decision came during a weekly government meeting and follows an agreement signed 15 March by the three countries.

According to the agreement, Russian state-controlled firms are to hold a 51% stake in the venture, while Greece and Bulgaria will hold 24.5% each.

The Russian consortium is made up of state oil company OAO Rosneft, pipeline monopoly Transneft, and a subsidiary of state-controlled gas giant OAO Gazprom.

The Greek parliament ratified the agreement in April.

The 280 kilometer pipeline from Bulgaria's Black Sea port of Burgas to the Greek port of Alexandroupolis will have an initial annual capacity of 35 million metric tons of oil, which could eventually be increased to 50 million tons a year, the agency reported.

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Posted 15/05/07

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