Gazprom approves loan for construction of Turkish Stream – Total project value EUR 11.4 billion

The board of directors of the Russian gas company Gazprom approved a loan to the company South Stream Transport B.V. in the amount of EUR 310 million for a period of 3.5 years for financing the construction of the Turkish Stream pipeline on Friday, December 30, 2016.

– The company South Stream Transport will utilize the funds provided by Gazprom for financing the costs of the Turkish Stream project, as well as for payments based on the contract on supplying pipe products and equipment, for carrying out construction works, the contract on purchasing goods and services, as well as for general administrative costs – Gazprom says, as reported by the Russian agency Tass.

The Russian authorities announced the construction of the Turkish Stream instead of the previously planned South Stream in December 2014. It had been planned initially for the land section of the Turkish Stream to have four branches, each with a capacity of 15.75 billion cubic meters. The negotiations about that project, however, were later stopped due to the crisis in the bilateral relations of Ankara and Moscow.

Following the negotiations between presidents of Turkey and Russia, Recep Tayyip Erdogan and Vladimir Putin, in August 2016, it was decided that the works on the project should restart and that a working group should be formed.

The Turkish Stream pipeline is supposed to deliver Russian gas underneath the Black Sea to the European part of Turkey and further, to the border with Greece, and the value of the project has been estimated at EUR 11.4 billion, Tass reports.

Gazprom Moscow

Gazprom

South Stream Transport BV

Turkish Stream pipeline

South Stream pipeline

Recep Tayyip Erdogan

Vladimir Putin