Greece hopes to reach deal on Russian gas pipeline soon

By Renee Maltezou & Angeliki Koutantou

Greece held "constructive" talks with the head of Russian gas giant Gazprom (GAZP.MM) who visited Athens on Tuesday and hopes that the two sides would soon reach a deal on a pipeline that will bring Russian gas to Europa via its territory.

Greece expressed interest in the pipeline during talks between Prime Minister Alexis Tsipras and Russian President Vladimir Putin in Moscow this month, and was hoping Russia would give the country advance funds for the project based on future profits it could earn from the pipeline's operation.

Gazprom's Chief Executive Alexei Miller did not make any reference to any advance payments to Greece from the pipeline in comments made to reporters on Tuesday after meeting Tsipras.

Greece is fast running out of cash and hopes to strike a deal with its EU/IMF lenders on a reform plan that will unlock fresh aid under its 240 billion euro bailout.

Russia on Saturday denied a German media report that suggested the gas pipeline deal could add up to 5 billion euros to Athens' depleted state coffers.

"The pipeline is of big interest to our country and is among our priorities," Greek Energy Minister Panagiotis Lafazanis told reporters. Lafazanis earlier met Miller separately.

"We are continuing talks with the Russian side and we hope to reach an agreement very soon," Lafazanis said, describing the talks as constructive.

Lafazanis declined to comment when asked by reporters about any advance payments.

After aborting a $40 billion South Stream pipeline last year, Russia is now pushing ahead with plans to build the so-called Turkish Stream project to Turkey and further out to Greece via the Black Sea, in line with its plans to stop exporting gas...