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Greece, Russia, Bulgaria sign oil pipeline deal March 15, 2007

The signature of the long-delayed Burgas-Alexandroupolis oil pipeline agreement between Greece, Russia and Bulgaria on Thursday was hailed as a “historic” moment by the leaders of the three countries, who attended the official ceremony held in Athens.

“An issue that remained outstanding for 14 years has been resolved in the best way for the benefit of all concerned,” Greek Prime Minister Costas Karamanlis said in statements during a joint press conference with Russian President Vladimir Putin and Bulgarian Prime Minister Sergei Stanishev after the signature of the trilateral agreement.

According to Putin, the pipeline was one of the most important projects in Europe and the entire world, while Stanishev spoke of a “new era in the energy sector”. All three leaders highlighted the close, high-level cooperation that had made the deal possible.

In response to questions, meanwhile, they promised that construction would use the latest 21st-century technology and fully respect the environment, both during extraction and in transporting the oil.

“Environmental organisations will be satisfied and we will meet all their demands. We will even change the pipeline’s route, if necessary,” Putin told reporters, citing his country’s extensive experience, especially in the region around the Caspian Sea.

Stanishev echoed the Russian President’s emphasis on environmental protection, while also noting that tourist traffic to the Black Sea must not be affected.

Karamanlis stressed that the deal for the construction and operation of the pipeline, which will carry Russian oil to the Mediterranean, “confirms in the most official way the political will and support of the three governments and signals new prospects for the future.” It set in motion a project of strategic importance for all three countries involved, as well as the surrounding region, he added.

The Greek Premier highlighted the environment benefits of the deal as well, noting that it would be new transport conduit for the oil transported via the Black Sea, auxiliary to the busy Bosporus Straits.

“With the decongestion of the Straits, environmental security is enhanced and a long-term problem is resolved. At the same time, the project is particularly important for the efficient operation and secure supply of oil to large energy markets,” Karamanlis said.

The Greek Premier pledged that Athens will continue to work on the pipeline at the same intense pace in order to make up for lost ground and complete the work as quickly as possible, giving Greece an upgraded role on the international energy map. He also referred to hundreds of new jobs that construction of the pipeline is expected to create and new opportunities for growth and progress.

According to Putin, the deal signed between the three countries after years of negotiations was an agreement of historic importance for the entire region and confirmed a climate of friendship and constructive relations between the three sides.

Among aspects highlighted by the Russian President was that of energy security, which he said was one of the most important issues of the current age, adding that certain access to energy sources was a guarantee for growth.

“The pipeline is one of the most important projects in both the European Union and the rest of the world. It contributes to the growth of all states in the region but also throughout Europe and boosts dialogue on how best to meet energy demands,” he told reporters. Putin also pointed to the “good geographic position” of Greece and Bulgaria, which created new possibilities for carrying Russian fossil fuels to the surrounding region and the world.

The Bulgarian Premier, like Karamanlis earlier, promised that work on the project would continue at a fast pace so that it could be completed as quickly as possible, while again highlighting the prospects for new jobs and for attracting investments among its multiple benefits.

Also confident of the rapid completion of the pipeline was the Russian President, who said that the construction of the Russian pipeline to the Pacific began six months earlier and had already covered more than 600 kilometres.

The trilateral agreement was signed by the three countries on Thursday at an official ceremony held in the Presidential Palace in Athens. Signing the agreement on behalf of the three countries were Greek Development Minister Dimitris Sioufas, Russia’s Industry and Energy Minister Viktor Khristenko and Bulgarian Regional Development Minister Asen Gagaouzov.

Among those attending were President of the Hellenic Republic Karolos Papoulias, Putin, Karamanlis, Stanishev, National Defence Minister Evangelos Meimarakis, Macedonia-Thrace Minister George Kalantzis, Deputy Foreign Minister Evripidis Stylianidis and Deputy Development Minister Yiannis Papathanassiou. 

The pipeline will be roughly 280 kilometres long and is expected to transport 35 million tonnes of crude oil per year, with the possibility of increasing output to 50 million tonnes in the future. The 700-million-euro pipeline is set to be completed by about 2011 and will bypass Turkey’s busy Bosporus Straits, carrying oil from the Black Sea port of Burgas in Bulgaria to the Greek port of Alexandroupolis in northeastern Greece.

Stanishev and Putin arrived in Athens Wednesday evening, and immediately met with Karamanlis who held a dinner in their honour at an Athens restaurant.

In greeting the Russian President upon his arrival at the Maximos Mansion on Thursday morning, Karamanlis said Putin’s second visit to Athens in just a few months’ time was an honour and joy for Greece as well as for himself and his government.

“This visit certifies the excellent relations between the two countries, and marks and symbolises the commencement of the construction of an important project, the Burgas-Alexandroupolis pipeline,” Karamanlis said.

The Greek Premier expressed pleasure that the agreement, and the decision taken at the trilateral meeting in Athens last September to manifest the three countries’ determination for the ambition project to proceed, was being materialised.

“I hope that this, and other common plans we have, will proceed with success,” Karamanlis said.

Putin, in turn, stressed that the signing of the agreement was in the interests of not only the three countries directly involved in the project but also of the global economy, noting that it was an important project in the sector of global energy. The Russian President added that the pipeline “allows diversification in the oil routes, to the benefit of our countries, our peoples and the economy”.

Putin stressed Karamanlis’ personal interest in advancing this issue, adding that his visit here was linked not only with the good relations between the two countries but also with the cooperation that exists in a number of sectors, and chiefly the sector of the economy. Citing Russian statistical data, he noted that the volume of commercial transactions has exceeded three billion dollars.

The Russian President further said that during his private meeting with Karamanlis, discussions would also cover international issues of common interest, with the focus on the Balkans.

Earlier on Thursday, in greeting his Bulgarian counterpart before their meeting, Karamanlis expressed satisfaction over developments for the pipeline project.

Stanishev, in turn, stressed that his associates and the three countries worked with much determination for the realisation of the project, adding that there was still much work to do regarding the establishment of the international construction and supply company for the project so as to enable construction to begin in early 2008. He stressed that the project will be beneficial for all three countries.

Stanishev further said that the project will put Greece and Bulgaria on the international energy map, bring new investments and create new jobs, while at the same time increase security in both countries.

Putin and Stanishev also met with President of the Republic Karolos Papoulias, who returned from an official visit to Croatia late on Wednesday night.

A half-hour meeting between Putin and Papoulias followed statements by the three leaders, after which the Russian President departed the country, immediately after a meeting with Stanishev at Athens airport. A meeting between Greek Foreign Minister Dora Bakoyannis and her Russian counterpart Sergey Lavrov also took place at the Greek Foreign Ministry on Thursday morning.