7 billion euros ($7.3 billion) of investments needed for the full implementation of the Turkish Stream gas pipeline project, according to an explanatory document to the draft bill on ratification of the Turkish Stream intergovernmental agreement.
MOSCOW (Sputnik) — The full implementation of the Turkish Stream gas pipeline project requires 7 billion euros ($7.3 billion) of investments taking into account the financial losses sustained as a result of the frozen South Stream project, an explanatory document to the draft bill on ratification of the Turkish Stream intergovernmental agreement said.
"The investments, which are necessary to implement the two-leg [gas pipeline] project including the losses suffered during the implementation of the underwater part of the South Stream project, amount to about 7 billion euros," the document said.
The Turkish Stream project was announced in late 2014 by Russian President Vladimir Putin on his state visit to Turkey. The pipeline envisions the construction of two underwater legs in the Black Sea, with the annual capacity of 15.75 billion cubic meters each. It is expected to deliver gas from Russia to Turkey and continue to a hub on the Turkish-Greek border, from where the gas could be transferred to other European countries.
In November 2015, the project was suspended after a Turkish F-16 fighter downed a Russian Su-24 aircraft in Syria. In June, following Turkey's apology to Russia for the incident, the sides began a reconciliation process. In October, Russia and Turkey signed an intergovernmental agreement on the gas pipeline.
Russia's energy company Gazprom will own rights for both underwater legs of the pipeline, while the land stretch of the first leg will be owned by the Turkish customers and the land stretch of the second leg will be controlled by a joint venture.
According to the document, uninterrupted supplies of the Russian gas through the first leg of the pipeline aimed at deliveries to Turkey will provide the Russian budget with annual revenues from the export duties of $750 million.
Russia's energy company Gazprom will own rights for both underwater legs of the pipeline, while the land stretch of the first leg will be owned by the Turkish customers and the land stretch of the second leg will be controlled by a joint venture.
According to the document, uninterrupted supplies of the Russian gas through the first leg of the pipeline aimed at deliveries to Turkey will provide the Russian budget with annual revenues from the export duties of $750 million.
The South Stream gas pipeline was intended to traverse the Black Sea to deliver Russian natural gas through Bulgaria, Serbia, Hungary and Slovenia to Italy and Austria to avoid exporting gas through the territory of Ukraine.
