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Russia and Greece sign $2.3 bln deal for gas pipeline
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The European Union is set to extend its economic sanctions against Russia for another six months next week. But Greece has been critical of the sanctions, and in the meantime, has just signed a multi-billion dollar deal with Russia.
Relations between Russia and Greece received a major boost this week, with two countries signing a 2.3 billion dollar memorandum on cooperation to build and operate a gas pipeline to deliver Russian gas to Greece.
Kremlin officials have so far denied that Russia is willing to provide financial aid to Athens, however, Greece is certainly set to benefit from the pipeline deal - Russia will cover the costs of it and the understanding is that Greece will pay its pipeline debts later.
Russia is also likely to sell its gas to Greece at a discounted price. The pipeline is part of the Turkish Stream project, which would allow Russia to deliver its gas to Europe bypassing Ukraine.
Greek Prime Minister Alexis Tsipras has been critical of the sanctions imposed on Russia over its role in Ukraine, which have triggered a Russian food embargo on EU and US food products.
Under European Union rules, all 28 member nations will have to approve the extension of sanctions against Russia next week for another six months - or until the Minsk cease-fire deal for Ukraine is fully implemented.
