Russian President Vladimir Putin and German Chancellor Gerhard Schroeder have finalized a key gas pipeline project
Russian President Vladimir Putin and German Chancellor Gerhard Schroeder have finalized a key gas pipeline project between Russian and Germany on Thursday during Putin's one-day visit to Germany.
By the way, the deal has been signed ten days before German elections that Schroeder may lose.
The construction of the pipeline, which will be laid under the Baltic Sea from Russia to Germany, bypassing Poland and Ukraine, will be launched in fall 2005 and be completed in 2010. With a throughput capacity of 55 billion cubic meters of natural gas a year, the project is expected to cost 2 billion euros.
The pipeline creation is aimed on lowering of transportation costs.
The Yuzhno-Russkoye field in Eastern Siberia will be the main source of supplies for the pipeline. Survey work and exploratory drilling has already begun at the field, which has probable reserves of 600 billion cubic meters of natural gas. Gazprom subsidiary Severneftegazprom holds the license for developing the field.
