Gazprom CEO Offers Greece a Gas Pipeline but Little Else

The chief executive of Russian state-owned OAO Gazprom pushed a plan Tuesday to sell its natural gas to the European Union via Greece, but made no public offers of immediate sweeteners during a visit to cash-strapped Athens.

OAO Gazprom CEO Alexei Miller said in a statement that the company could guarantee annual shipments of 47 billion cubic meters of gas via Greece. He said Greece could raise commercial loans against the guaranteed deliveries.

Greece, which is in difficult talks with European leaders over much-needed financing, is hoping for an economic boost from Russia, such as cheaper natural gas supplies or an exemption from Moscow's ban on European food imports. But there have been no major agreements despite a two-day trip by Greek Prime Minister Alexis Tsipras to Moscow earlier this month, where he met Russian President Vladimir Putin and criticized the EU's sanctions policy against Russia over the Ukrainian conflict.

Greece would benefit from the pipeline through construction jobs and collection of transit fees once the pipeline is operating.

In Athens Tuesday, Mr. Miller said a consortium of Russian and European companies could build the Greek pipeline, an extension to the planned Turkish Stream project that will take Russian gas under the Black Sea. Russia announced Turkish Stream late last year after its plans to build a pipeline called South Stream, to enter the EU via Bulgaria, was thwarted by European regulators. Analysts question the need for the project, mainly aimed at circumventing Ukraine, the main transit route to Europe for Russian gas.

During his brief visit in Athens, Mr. Miller had separate meetings with Mr. Tsipras and Energy Minister Panagiotis Lafazanis.

Mr. Lafazanis was confident later about a possible pipeline, which he said would benefit both Greece and Europe.

"We hope that we will reach an agreement soon," Mr. Lafazanis said.

Mr. Miller said the consortium would have no problem attracting 2 billion euros in financing for the project, and that some companies had already shown interest. He added that the project would be carried out "strictly according to European legislation."

Mr. Lafazanis said that there is no reason why the European Union would object to this project, as it will be compatible with EU regulations and since it has already given the green light for the Trans Adriatic Pipeline.

"Greece has to follow a new, independent and multidimensional economic policy," the energy minister said.

Mr. Miller of Gazprom made no mention of Greece's request for cheaper gas supplies.

Nektaria Stamouli in Athens contributed to this article

Write to James Marson at [e-mail]

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