The Strategist

Greece to Receive up to € 3 Billion Under the Turkish Stream Agreement

04/28/2015 - 15:57

Greek Prime Minister Alexis Tsipras confirmed information about the possible advance payment for Athens on future deliveries.
Greece can get up to 3 billion euros as an advance in the case of an agreement on the construction of transit Russian gas pipeline through the country, said Greek Prime Minister Alexis Tsipras in an interview with Star TV, reports Bloomberg agency.

According to him, due to the project, a European energy hub will be created in Greece, reducing the cost of energy for the country. Athens considers pipeline compling with all the requirements of European legislation as one of the conditions of constructions.

Earlier, the German media reported that the prepayment for Athens under a contract with Moscow on ‘Turkish Stream’ will be up to 5 billion euros. However, a spokesman for the Russian president, Dmitry Peskov, denied these rumors.

Russia and Greece are discussing the construction of a Greek withdrawal from the ‘Turkish stream’. The project, as stated by the representatives of the Russian side, can be realized by Russian-European consortium in accordance with European legislation. Russian oil company, Gazprom, intends to transit 47 billion cubic meters of gas through the territory of Greece.

The head of the Russian company, Alexei Miller, previously estimated the cost of Athens to build its part of the tube to 2 billion euros.

‘Turkish stream’ is supposed to replace the ‘South Stream’, whose construction was suspended in late 2014. As explained by Vladimir Putin, then, this was done because of the unconstructive position of Bulgaria, the territory of which the pipeline had to go through. The ‘Turkish stream’ is one of Russia's priorities as a transit contract with Ukraine will not be extended after 2019.
It is assumed that ‘Turkish stream’ will bring 47 billion cubic meters of gas to Greece per year, as well as much-needed revenue, 2,000 new jobs and direct income from three to five billion dollars.

- Greece’s cooperation with Russia has a lot to do to us. Pipeline project is our first priority. Discussions are ongoing, and we hope that it will soon reach an agreement beneficial to our economy and our people, - Minister of Energy in Greece Panayiotis Lafazanis.

In the interview with Star TV, Alexis Tsipras also expressed confidence that the agreement between Athens and international lenders will be achieved in the near future. He hoped that a preliminary agreement may be reached by the end of the week. And May 9, according to Tsipras, the parties may have their differences already resolved.
US Energy Secretary Ernest Moniz said that the United States supports the laying of gas pipeline from the Caspian Sea via Turkey and Greece in Europe. However, this applies only to the project TANAP, not ‘the Turkish stream’

International lenders, in exchange for financial assistance, require Greece to continue the course of austerity. Athens believes that the reforms advocated by the creditors only worsen the economic situation in the country. Greece previously hoped that it will be able to agree on the continuation of funding for aid programs for another 7.2 billion euros until the new agreement.