Moscow and Ankara agreed to spur efforts to build the $2.5 billion Samsun-Ceyhan oil pipeline in Turkey, Prime Minister Vladimir Putin said Wednesday, signaling that a similar, Russia-backed link through Bulgaria and Greece may no longer be in the cards.
The new Bulgarian government, which took over in July, suspended all Russia-related projects for scrutiny, including the pipeline known as Burgas-Alexandropoulos.
Energy Minister Sergei Shmatko visited Sofia last month for an update but brought back no final decision on the project, which was designed to take off some tanker-traffic load from the dangerously congested Bosporus.
“We agreed to step up work on the Samsun-Ceyhan pipeline,” Putin said at a news conference alongside his Turkish counterpart, Recep Tayyip Erdogan, after they held talks.
The project is currently backed by private Turkish company Calik Energy and Italy’s state-controlled Eni through a 50-50 joint venture. Putin said he proposed that Russia sign a tripartite agreement with Turkey and Italy on the pipeline.
“We will begin working on the issue with our Italian partners,” he said.
The pipeline was conceived in 2005, but the idea did not gain momentum because Russia, a key prospective oil supplier for the route, snubbed it in favor of the Burgas-Alexandropoulos line. Now, Bulgaria’s lukewarm attitude appears to have breathed new life into the Turkish alternative.
The 555-kilometer pipeline would carry Russian and Kazakh crude from the Black Sea port of Samsun to the Mediterranean port of Ceyhan, after which the oil would travel to Europe by tanker. The pipeline is expected to be completed in 2012 and to transport 1.5 million barrels per day.
On the corporate level, Russia could be represented by state-controlled Rosneft and Transneft in the efforts to construct the Turkish pipeline.
Russia and Turkey discussed at least two other energy projects Wednesday. Erdogan said the countries were close to striking a deal for Russia to construct Turkey’s first nuclear power station. The countries signed an accord on cooperation in constructing the station Wednesday.
Turkey held a tender for the job, in which Atomstroiexport was the only bidder, but canceled the bidding in November after a court ruling.
A question from a reporter prompted Putin to extol Russia’s advantages as a nuclear power contractor, saying his country stood out as the only one able to build reactors, supply them with fuel, take back spent fuel for storage, lend money for the work and allow local companies to do at least 20 percent of basic construction on sites.
“By offering these opportunities as one package, we get a chance to charge very competitive prices,” he said. “Much more competitive than others can offer.”
On another energy issue, Putin said Turkey reiterated its willingness to give the go-ahead to the South Stream gas pipeline by Nov. 10. Gazprom and Eni plan to build the pipeline across the bottom of the Black Sea with a stretch running through Turkey’s waters.
The partners completed the environmental impact assessment and are close to finishing two other studies — geological and ?seismic ones — required for the Turkish authorities to make a decision, Putin said.
The pipeline would come to shore in Bulgaria and run through several European countries, terminating in Italy and Austria after splitting into two branches.
Russia and Turkey, one of the most popular destinations for Russian tourists, also agreed to work to cancel visas, a plan that they expect to materialize in May or July when President Dmitry Medvedev is scheduled to visit Turkey, the prime ministers said.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.