[A-List] Russian President Putin Clinches Key European Pipeline Deal

["Yoshie Furuhashi" <critical.montages@xxxxxxxxx>]

<http://news.yahoo.com/s/afp/20080118/ts_afp/bulgariarussiapoliticsputin_080118140708;_ylt=AiglLJh5H_6RrE65JRL_fBqAsnsA>
Russian President Putin clinches key European pipeline deal

by Diana Simeonova
Fri Jan 18, 9:10 AM ET

Russian President Vladimir Putin clinched a key pipeline deal with
Bulgaria on Friday that strengthens Moscow's grip on European gas
markets before issuing a stern warning about the future status of
Kosovo.

Bulgaria and Russia agreed to build the so-called South Stream
pipeline project, which will cross the Black Sea into Bulgaria and
then split in two arms, one going northwest to Austria and the other
south to Greece and then west to southern Italy.

It will strengthen Moscow's grip as the leading supplier of gas to
Europe and will rival EU plans for its own pipeline project, Nabucco,
aimed at reducing the bloc's dependence on Russian gas.

"The negotiations ended successfully for both parties. Bulgaria's
interests have been protected," Bulgarian Prime Minister Sergey
Stanishev said.

After sealing the agreement, Putin turned to the contentious issue of
Kosovo's independence during a joint press conference with Bulgarian
President Georgy Parvanov.

"A unilateral declaration of independence by Kosovo and its eventual
support from the international community would be illegal and immoral
and Russia cannot support such a solution to the problem," Putin said
on a the final day of a visit to Bulgaria.

Kosovo, supported by the United States and some EU countries, has
threatened to declare independence in the coming months, which both
Moscow and Belgrade oppose.

Serbia, a traditional ally of Moscow, opposes anything greater than
more autonomy for the majority ethnic Albanian province.

The majority ethnic-Albanian province has been administered by the
United Nations since a NATO air war in 1999 ended a Serbian crackdown
on ethnic Albanians, including separatist rebels.

In possibly his last major push for Russia's energy interests abroad
before he steps down, Putin also oversaw the signing of other
long-delayed agreements.

Russia won a contract to build a four-billion-euro new 2,000-megawatt
nuclear power plant in the town of Belene on the Danube.

Russian nuclear technology company Atomstroiexport saw the deal as "an
important victory ... that opens the way to Russian nuclear technology
in Europe."

Construction work on the first of the plant's two 1,000-megawatt
pressurized-water reactors would begin in 2008, with the first reactor
expected to be operational by January 2014 and the second a year
later.

The third major coup for Putin on his trip to Sofia was the signing of
a contract to set up a joint company for building the
Burgas-Alexandrupolis pipeline to channel Russian oil from the Black
Sea to the Aegean.

The project, which has been talked about for 14 years, is seen as an
alternative to the tanker-congested Bosphorus Straits.

The deal on the South Stream pipeline had not been expected due to an
ownership dispute, but both sides agreed to take a 50-percent stake in
the Bulgarian stretch.

The deal only came about "thanks to the personal intervention of
President Putin," Bulgarian Prime Minister Sergey Stanishev said.

Later on Friday, Putin was set to meet premier Stanishev before
heading back to Moscow at around 6:30 pm (1630 GMT).

His visit to Sofia, the second during his term as president, was
officially to mark the 130th anniversary of the Russo-Turkish War of
1877-1878, in which Russia freed Bulgaria from five centuries of
Ottoman domination.

Ties between the former Cold War allies have suffered a setback
following the fall of the Iron Curtain in 1989, with Bulgaria joining
both the EU and NATO.

Five smaller contracts were also signed during Putin's visit,
including one to build a train ferry system linking Russia's Kavkaz
port in the Kerch Strait with the Bulgarian port of Varna on the Black
Sea.

Critics argue that the raft of different deals will only cement
Bulgaria's dependence on Russian energy.

But Bulgarian president Parvanov rejected such suggestions.

The deals were "an important step in the process of diversification of
energy sources and supply routes and will increase the energy security
of the Balkans and of Europe as a whole," he insisted.

Analysts saw no threat to the European Union's Nabucco project, in
which Bulgaria is also involved.

"South Stream will not harm the interests of European consumers," said
Industry Watch analyst Lachezar Bogdanov.

"In exactly the same way that Europe is looking to diversify its
energy sources, Russia is seeking alternative outlets for its energy
supplies," the analyst said.

--
Yoshie
<http://montages.blogspot.com/>