Wednesday, 11 March 2009Hungarian energy company MOL and Russia's energy giant Gazprom signed an agreement in Moscow on Tuesday to build the Hungarian section of the South Stream gas pipeline. The project that involves construction of a Hungarian section for the South Stream pipeline is designed to carry 31 billion cubic meters of natural gas per year to the European countries through the Balkans. According to RIA Novosti; Hungary, Bulgaria, Serbia, Italy and Greece are involved in the deal. Notably agreement is to bypass Ukraine, which has been the main transit state for Russian gas. The first deliveries are expected to transfer in 2013.
Putin said a separate deal to build a large underground natural gas storage facility in Hungary was also in the works. While Putin said Hungarian energy company MOL is Gazprom's partner in that project, Medvedev stressed that bilateral trade rose by almost two-thirds last year, and described the agreement on the South Stream project as an essential step forward. On the other hand Hungarian Prime Minister Ferenc Gyurcsany added that 'Hungary is interested in there being as many pipelines as possible'.
Hungary was one of several EU states that deprived of Russian gas in January during Russia's dispute with Ukraine. Moreover Hungary is more than 90 % dependent on Russian gas for its energy needs.
by Simge Soyer, JTW
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Wednesday, 11 March 2009
Journal of Turkish Weekly
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