The three countries signed a memorandum on the Burgas-Alexandroupolis pipeline in April 2005. Once completed, the pipeline will pump 35 million metric tons of oil a year (257.25 million bbl), a volume that could eventually be increased to 50 million metric tons (367.5 million bbl).
Russian President Vladimir Putin arrived in Athens on Wednesday as part of his short European tour, which started in Italy. He will attend the signing of the long-delayed agreement that envisions the development of a project, designed to bypass the crowded Bosporus Strait in Turkey.
The 280-kilometer (175-mile) pipeline will pump Russian oil to Europe, the U.S. and the Asia-Pacific region via the Bulgarian Black Sea port of Burgas and Greece's Alexandroupolis, on the Aegean, enhancing the countries' roles as key energy transit hubs.
The project has been on the table for more than 10 years, but progress has been slow, reportedly due to Russian producers' reluctance to contribute oil to the pipeline.
The Russian government approved Wednesday the draft agreement on the construction of the Burgas-Alexandroupolis pipeline, a move that was immediately hailed by the European Commission.
EC Spokesman for Energy Ferran Tarradellas Espuny said the project is a good example of cooperation with Russia in the energy sector, adding that investment in the project will be attracted from private investors.
Russia's state-controlled oil producer Rosneft [RTS: ROSN], state pipeline operator Transneft, and energy giant Gazprom [RTS: GAZP] will hold a total of 51% in the project, while Greece and Bulgaria will control 24.5% each.
