Russia Prez Putin to discuss oil pipeline in Athens

Athens, Sep 4: Russian President Vladimir Putin arrives in Athens today to discuss with Greece and Bulgaria a long-delayed trans-Balkan oil pipeline, envisaged to decongest the busy Bosphorus Straits.

The 897.1 million dollar project, which has stumbled on horse-trading between the three countries involved for about a decade, was planned to bring cheaper Russian crude to the Mediterranean and strengthen Moscow's grip on the region's energy market.

Greek officials said Putin will be discussing several energy projects during his one day visit but will mainly focus on the Burgas-Alexandroupolis pipeline, which has finally won approval from all sides involved last year.

About 155 km of the pipeline, which will eventually have a daily capacity of about 800,000 barrels, will pass through Bulgaria and Bulgarian President Georgi Parvanov, will also attend the meeting.

For years, the three countries disagreed on key issues, such as who will build the pipeline, the ownership of the terminals and transit fees.

The pipeline will initially bring 10 million tonnes of crude a year from the Black Sea port of Burgas to the north Aegean town of Alexandroupolis, bypassing the Bosphorus Straits, avoiding sea traffic and reducing environmental risks from oil spills.

Its capacity is designed to eventually reach 35 million tonnes some three years after its launch, which is expected in 2009.

Reuters