Greece closer to the Turkish Brook – Republic

Source: Bloomberg

Russia and Greece signed a memorandum on the construction of the territory of Greece Turkish Stream pipeline. The agreement does not contain any details of the investment.

This is another document signed during an economic forum in St. Petersburg. Energy ministers of Russia and Greece signed a memorandum on the participation of Greece in the Turkish Brook.

– The signed memorandum is the result of months of work, which is conducted to lead this pipeline through the territory of Greece. Turkish Stream will play a stabilizing role in the region. this project is not directed against anyone, but on the contrary will connect all regions, through which passes – assured the Greek Minister Panayiotakis Lafazanis, the agency said Prime.

Minister Alexander Nowak added that the signing of the memorandum of cooperation of Russia and Greece ‘ is entering a new level. “The parties did not disclose any details of the investment. Greece there is no money to finance its section of the pipeline (cost is approx. 2-3 billion). A European Commission in May warned Athens that it does not agree to the Greeks They took the money, which proposes them to Moscow.

In this situation, signed a memorandum of intent is merely a record of both parties. For now, Turkish Potok (first thread) is to supply gas only to Turkey (16 billion m3 per year). However, Gazprom there is still no signed a binding agreement with Turkey on this issue. The situation is complicated by recent parliamentary elections, where the pro-Russian ruling party lost its majority and to continue to govern must form a coalition.

Yesterday, Germany’s Wintershall (shareholder of Nord STER) today announced that it will not participate in the construction of the Turkish Brook. Mario Meren President of the concern expressed skepticism about the construction of gas storage facilities on the Greek-Turkish border, where Russian gas to western customers would receive their pipelines built. The head of Wintershall considers that in Europe there are no takers for such investments.