Gazprom Plans to Lend Subsidiary $326 Mln to Finance Turkish Stream

Russia's Gazprom energy company will lend its subsidiary South Stream Transport 310 million euros ($326 million) to finance expenses associated with the construction of the Turkish Stream project, the firm said Friday.

MOSCOW (Sputnik) — The $326 million will cover expenses on tubular and equipment deliveries, storage and execution of construction and installation work, as well as other procurement contracts, works and services, and general administrative expenses, Gazprom specified.

"PJSC Gazprom provides the company South Stream Transport B.V. 310 million euros… while South Stream Transport B.V. shall repay the provided loan in full… and to pay interest on borrowings in the order and terms established by the contract," Gazprom said.

The Turkish Stream project was announced in late 2014 by President Vladimir Putin on his state visit to Turkey.

The project envisions the construction of two underwater legs in the Black Sea, with the annual capacity of 15.75 billion cubic meters each. It is expected to deliver gas from Russia to Turkey and continue to a hub on the Turkish-Greek border, from where the gas could be transferred to other European countries.

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