Russia and Greece signed a deal for a section of the so-called Turkish Stream gas pipeline on June 19, Russian media has reported, which could give Greece a critical revenue boost – but not yet.
The deal was signed between energy ministers Alexander Novak of Russia and Panagiotis Lafazanis of Greece, for a pipeline with a capacity of 47 billion cubic meters a year, it was reported.
Construction of the Greek section of the Turkish Stream pipeline will start in 2016 and be completed by 2019. The two countries will have equal shares in the company, Novak was quoted by RT as saying at International Economic Forum in St. on Friday.
Novak said Russia will initially finance the construction of the pipeline, according to Sputnik.
“Our meeting today is a historical meeting… the memorandum expresses the readiness of both sides to bring the south direction of the pipeline to implementation,” Lafazanis said.
Russia’s state giant Gazprom will not own the Greek part of the Turkish Stream gas pipeline, which Greece wants to call GreekStream for the portion that runs through the country.
Russia will assist Athens in financing the project, Novak said.
Speaking at a memorandum signing ceremony for the project on the sidelines of the St Petersburg International Economic Forum, Novak said the ownership will be split in equal parts between Russia and Greece.
He added that Russia’s state development bank Vnesheconombank, or VEB, will assist Greece in finding financing for the project.