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Greece to receive up to €5bn from Russia for a planned gas pipeline that runs through the country
Greece could reap up to €5bn from a planned Russian gas pipeline that runs through the country and on to the rest of Europe, easing fears it could run out of money within weeks.
The construction of the "Turkish Stream" pipe could "turn the tide" for the debt-stricken country, Der Spiegel quoted a senior official in Greece's ruling Syriza party as saying.
A deal between Russia and Greece is expected to be signed on Tuesday, the magazine added, with the payment an advance on future profits from transit fees.
The pipeline is due to be up and running in 2019.
It comes after Greek Prime Minister Alexis Tsipras held talks with Russian president Vladimir Putin in Moscow earlier this month. his visit to the Kremlin, Mr Tsipras insisted Greece was not a “debt colony”, but a “sovereign nation with the indelible right to carry out its own foreign policy”.
• Tsipras risks schism with Europe after warning of new Cold War with Putin
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Mr Putin said he stood ready to assist Athens, feeding Greece's needs for natural gas through the Turkish Stream pipeline and pumping investment in the country's energy and transport sectors.
“Just because Greece is debt-ridden, this does not mean it is bound hand and foot, and has no independent foreign policy,” said Mr Putin.
Thwarted in one attempt to build a gas pipeline to southeast Europe, Russia has now pinned its hopes on Turkey, hoping to construct a pipeline that runs through Greece to help it maintain leverage in its rivalry with the West.
Greek Energy Minister Panagiotis Lafazanis told Greek radio recently that the project - which would be fully financed, built and operated by private companies - would create around 20,000 jobs.
The Left-wing Syriza government in Athens no longer has enough money to meet the next €1.7bn bill for salaries and pensions later this month, and faces an almost €1bn IMF bill in early May.
http://www.telegraph.co.uk/finance/e...-the-tide.html
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