Greece, Russia sign accord on gas pipeline

Russian Minister for Industry and Energy Viktor Khristenko and Greek Development Minister Christos Folias signed the deal at a televised ceremony in the Kremlin.

Russian President Vladimir Putin, who held talks with Greek Prime Minister Costas Caramanlis before the ceremony, said both South Stream and a proposed Russian-backed oil pipeline through Greece were in Europe’s interest. "Their aim is to significantly increase the energy security not only of the Balkans but of the entire European continent," he said.

The 280-kilometre (175-mile) Burgas-Alexandroupolis oil pipeline will connect the Black Sea to the Aegean as a vital alternative route bypassing the tanker-congested Bosphorus Straits.

South Stream, meanwhile, is planned to pump up to 30 billion cubic meters per year gas under Black Sea from Russia to Bulgaria before crossing southern Europe in two branches, one northwest to Austria, the other southwest to Greece and Italy.

Developed by Gazprom with Italy’s Eni, the project is seen as crucial to Russia’s efforts to maintain a dominant position on the European continents gas supply.

Bulgaria and Hungary have already signed up to the project, which rivals an EU-backed proposal to build the 3,300-kilometre (2,050-mile) Nabucco pipeline, aimed at reducing the blocs dependence on Russian supplies.

Nabucco would run through Turkey and southeastern Europe to carry gas from the Middle East and Central Asia to Europe, bypassing Russia.