Post by Steve Gardner on Jan 18, 2008 21:11:25 GMT
Source: AFP
SOFIA (AFP) — Bulgaria and Russia signed a deal Friday for the 10 billion euros (14.7 billion dollars) South Stream pipeline to carry Russian gas to Europe, giving Moscow an even greater say on European energy supplies.
The landmark deal was signed at a ceremony attended by Russian and Bulgarian presidents Vladimir Putin and Georgy Parvanov.
It was agreed after intensive last-minute talks between the two former Cold War allies and came about "thanks to the personal intervention of President Putin," Bulgarian Prime Minister Sergey Stanishev said.
The South Stream pipeline, being built by Russia's Gazprom and ENI of Italy, will first cross the Black Sea into Bulgaria and then split into two arms, one going northwest to Austria and the other south to Greece and then west to southern Italy.
Gazprom chief Alexey Miller said the gas giant was also closer to clinching a deal with Serbia on the takeover of its state-controlled oil monopoly NIS.
"We're close to a final agreement," Miller told AFP.
"We're in the process of wrapping up negotiations with the Serbian side and a draft intergovernmental agreement is being drawn up," he said.
In Belgrade, Serbian Prime Minister Vojislav Kostunica said he was confident the deal would be reached with Russia "on strategic cooperation in the energy field" but gave no timetable for it.
"Everything goes in the right direction," Kostunica said in a statement carried by Beta news agency.
Serbian Deputy Prime Minister Bozidar Djilic, whose Democratic Party has so far hesitated to agree on the deal, said talks with Gazprom were ongoing.
"At this moment we are negotiating conditions. When we achieve them, we will make the deal. I hope that we will be able to do it quickly," Djelic told B92 television.
Earlier this week, Serbian media said Belgrade was hesitating to give Gazprom full control of NIS because its offer was felt to be insufficient.
In December, Gazprom offered 400 million euros (595 million dollars) for 51 percent of NIS. It also promised to invest 500 million euros in the company and ensure passage via Serbia of the South Stream pipeline.
With capacity to transport up to 30 billion cubic metres (one trillion cubic feet) of gas annually, South Stream will strengthen Moscow's grip as the leading supplier to Europe.
The cost of building the pipeline is estimated at 10 billion euros, with the Bulgarian stretch amounting to 1.4 billion euros, Premier Stanishev said.
"Joining the project will increase Bulgaria's importance on the European energy map," he said.
"It's important that both sides have reached a compromise. As it stands, the agreement reflects the balance of interests and allows us to move on on this difficult topic," said Russian First Deputy Prime Minister Dmitry Medvedev, the man Putin wants to succeed him in the Kremlin, in comments reported by Russian news agency Ria Novosti.
South Stream rivals EU plans for its own pipeline project, Nabucco, which will transport Central Asian gas from the Caspian basin to Europe but bypass Russia.
The strategic aim of Nabucco is to reduce the EU's dependence on Russian gas.
Given its key geographic position, however, Bulgaria is looking to participate in both projects, since it stands to pocket hefty transit fees for the transportation of gas through its territory.
Sofia's talks with the EU on Nabucco have stalled recently.
Premier Stanishev said that both sides had agreed to a stake of 50 percent each in the company that will operate the stretch of the South Streem pipeline running through Bulgarian territory.
Russia had previously wanted to retain full or at least majority ownership.
Bulgaria had said earlier this week that it did not expect to sign the South Stream deal because a number of contentious issues -- notably on ownership and transit fees -- had not been resolved.
However, a breakthrough was reached late Thursday during talks between the Bulgarian and Russian economy ministers, a member of the Bulgarian delegation participating in the negotiations told national television on Friday.
"The Russian side accepted at the last minute a large number of the conditions demanded by Bulgaria," said the deputy head of the parliamentary economics committee Petar Kanev.
"Our national interests have been protected. We'll receive several hundreds of millions of dollars (euros) each year in transit fees," Kanev said.
SOFIA (AFP) — Bulgaria and Russia signed a deal Friday for the 10 billion euros (14.7 billion dollars) South Stream pipeline to carry Russian gas to Europe, giving Moscow an even greater say on European energy supplies.
The landmark deal was signed at a ceremony attended by Russian and Bulgarian presidents Vladimir Putin and Georgy Parvanov.
It was agreed after intensive last-minute talks between the two former Cold War allies and came about "thanks to the personal intervention of President Putin," Bulgarian Prime Minister Sergey Stanishev said.
The South Stream pipeline, being built by Russia's Gazprom and ENI of Italy, will first cross the Black Sea into Bulgaria and then split into two arms, one going northwest to Austria and the other south to Greece and then west to southern Italy.
Gazprom chief Alexey Miller said the gas giant was also closer to clinching a deal with Serbia on the takeover of its state-controlled oil monopoly NIS.
"We're close to a final agreement," Miller told AFP.
"We're in the process of wrapping up negotiations with the Serbian side and a draft intergovernmental agreement is being drawn up," he said.
In Belgrade, Serbian Prime Minister Vojislav Kostunica said he was confident the deal would be reached with Russia "on strategic cooperation in the energy field" but gave no timetable for it.
"Everything goes in the right direction," Kostunica said in a statement carried by Beta news agency.
Serbian Deputy Prime Minister Bozidar Djilic, whose Democratic Party has so far hesitated to agree on the deal, said talks with Gazprom were ongoing.
"At this moment we are negotiating conditions. When we achieve them, we will make the deal. I hope that we will be able to do it quickly," Djelic told B92 television.
Earlier this week, Serbian media said Belgrade was hesitating to give Gazprom full control of NIS because its offer was felt to be insufficient.
In December, Gazprom offered 400 million euros (595 million dollars) for 51 percent of NIS. It also promised to invest 500 million euros in the company and ensure passage via Serbia of the South Stream pipeline.
With capacity to transport up to 30 billion cubic metres (one trillion cubic feet) of gas annually, South Stream will strengthen Moscow's grip as the leading supplier to Europe.
The cost of building the pipeline is estimated at 10 billion euros, with the Bulgarian stretch amounting to 1.4 billion euros, Premier Stanishev said.
"Joining the project will increase Bulgaria's importance on the European energy map," he said.
"It's important that both sides have reached a compromise. As it stands, the agreement reflects the balance of interests and allows us to move on on this difficult topic," said Russian First Deputy Prime Minister Dmitry Medvedev, the man Putin wants to succeed him in the Kremlin, in comments reported by Russian news agency Ria Novosti.
South Stream rivals EU plans for its own pipeline project, Nabucco, which will transport Central Asian gas from the Caspian basin to Europe but bypass Russia.
The strategic aim of Nabucco is to reduce the EU's dependence on Russian gas.
Given its key geographic position, however, Bulgaria is looking to participate in both projects, since it stands to pocket hefty transit fees for the transportation of gas through its territory.
Sofia's talks with the EU on Nabucco have stalled recently.
Premier Stanishev said that both sides had agreed to a stake of 50 percent each in the company that will operate the stretch of the South Streem pipeline running through Bulgarian territory.
Russia had previously wanted to retain full or at least majority ownership.
Bulgaria had said earlier this week that it did not expect to sign the South Stream deal because a number of contentious issues -- notably on ownership and transit fees -- had not been resolved.
However, a breakthrough was reached late Thursday during talks between the Bulgarian and Russian economy ministers, a member of the Bulgarian delegation participating in the negotiations told national television on Friday.
"The Russian side accepted at the last minute a large number of the conditions demanded by Bulgaria," said the deputy head of the parliamentary economics committee Petar Kanev.
"Our national interests have been protected. We'll receive several hundreds of millions of dollars (euros) each year in transit fees," Kanev said.