President of Russia Vladimir Putin (left), Prime Minister of Greece Kostas Karamanlis (center) and President of Bulgaria Georgy Parvanov (right) in Athenes.
Photo: Dmitry Azarov
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President Reaches Long-Awaited Pipeline Agreement
// Visit
Russian President Vladimir Putin flew to Athens yesterday for negotiations with Greek Prime Minister Kostas Karamanlis and Bulgarian President Georgy Parvanov on the construction of the Burgas-Alexandroupolis oil pipeline. But Kommersant special correspondent Andrey Kolesnikov is convinced that Putin flew on to South Africa still wondering if the negotiations were successful.
The Russian president's enormous limousine pulled up to the residence of the Greek prime minister and he got out. Fully half a minute later, Russian businessmen began quietly to emerge from the vehicle as well. LUKOIL president Vagit Alekperov, Gazprom chief Alexey Miller and Rosneft head Sergey Bogdanchikov were noted among them. Putin brought them with him apparently for add support for the preparedness he is promising. The heads of Russia, Bulgaria and Greece were to sign a declaration of intent on the construction of the Burgas-Alexandroupolis oil pipeline, about which politicians and businessmen have been talking for the last ten years. But so far there has been no declaration, no agreement on participants or shares.
LUKOIL had been interested in the project until it bought 58 percent of the stock in an oil refinery in Bulgaria, removing the company's need to pump crude oil to Greece. The last foreign company to decide against participation was the American Chevron. News agencies reported that as Putin was preparing for his trip.
Half an hour after his arrival, Bogdanchikov approached journalists. “The country needs additional export capacity,” he said. “The oil pipeline opens new possibilities for export of Russian oil to America and Southeast Asia.” He went on to say that all problems had been overcome and the negotiations were routine and connected with the land under the pipeline. After that the technical and economic specifications would be prepared.
But it quickly became clear that things are not that simple. It is still not known who the participants in the project will be. Bogdanchikov suggested that Russia would be represented by Gazpromneft, Transneft and TNK-BP. He denied that Chevron had declined to participate in it and was unprepared to say when the pipeline would be completed. When pressed, he said that 2009-2010 would be realistic, at a cost of about a billion dollars, which Rosneft was prepared to pay.
After a considerable amount of confusion, reflecting the disorganization of the Greeks, journalists were led to an auditorium where the Greek prime minister announced that the declaration of intent had been signed. (In actuality, the declaration does not express any intentions. Rather it expresses the parties' wishes, more-or-less in the form of ultimatums.)
President Putin thanked the Greeks for their “cordiality and hospitality,” causing giggles in the Russian and Bulgarian delegations. The Bulgarian leader said that “two presidents and one head of government were able to overcome problems that had built up over decades” in 50 minutes of negotiations.
At this point, it seemed as though the Russian and Bulgarian presidents were hinting at a hitch on the Greek side. Karamanlis, however, stated that no one and nothing more can hinder the construction of the pipeline. “We have expressed the political will to advance this thing as quickly as possible,” he said. “We have made a schedule for signing a specific agreement on the construction before the end of 2006.”
That was the real news.
“This project,” Putin added, “lies within the sphere of national interests of the participant countries. Its implementation will raise their status. It's one thing to discuss the problems of energy security and another thing to have reservoirs, terminals, pipeline systems, to receive taxes and really to influence the energy policy of Europe. The main thing is to learn to be aware of your national interests.” Apparently 50 minutes wasn't enough for him.
A Bulgarian journalist asked Parvanov if he had succeeded in specifying the special conditions for Bulgaria's participation. The Bulgarian president evaded the question. Putin did not however.
“Russia will not place any harsh conditions on anybody!” he exclaimed. “I told my colleagues and I will tell you now. Two and a half months ago, we made a decision to build a pipeline from East Siberia to the Pacific Ocean. And we have already built over 250 km. Burgas-Alexandroupolis is 270 km.! In the time we have been talking about the pipeline, the Baku-Ceyhan pipeline has been built, the Blue Flow is working! If we keep on talking, all new routes will bypass [Greece and Bulgaria]! And the benefit will be lost! And no need to think that anyone placed any conditions!”
Andrey Kolesnikov
All the Article in Russian as of Sep. 05, 2006
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