Russian government provides backing for Blue Stream, EBRD extends funds
The Russian government presidium has decided to provide federal backing to the Goluboi Potok (Blue Stream) project
for the export of Russian gas to Turkey.
The resolution makes it incumbent on the Russian Ministry of Foreign Affairs to hold talks on a special taxation
system for the pipeline construction project with Turkish authorities. Previously, most government officials,
including Viktor Kalyuzhny, fuel and energy minister, criticised both the project and the Gazprom company, which is
in charge of this project. Some rumours held that Rem Vyakhirev, Gazprom's CEO, will be soon barred from running the
company. However, Goluboi Potok obtained federal backing and currently, Gazprom welcomes the chance to forge ahead of
its rivals, primarily, the American-Turkmen-Azerbaijani project for the supply of gas from Turkmenistan to Turkey.
The European Bank for Reconstruction and Development (EBRD) will soon issue funds for the construction of the second
pipeline arm to link Russia and Turkey, reported Yavuz Kylych, co-chairman of the Russian-Turkish business
council.
EBRD approved a pipeline construction program and is ready to extend about $ 700 million for that purpose. The
construction will involve Turkey, Russia and Ukraine, which have established the Transbalkan joint venture.
Pipeline construction is part of the Goluboi Potok (Blue Stream) project.
At present, Russia supplies about 6 bn cm of gas to Turkey and plans to increase exports to 30 bn cm.
