Putin, Schroeder give blessing to gas pipeline deal

The leaders of Russia and Germany gave their blessing yesterday to a gas pipeline deal that cements Berlin's energy ties to Moscow but which Poland and others fear leaves them vulnerable to the whims of the Kremlin. The deal on the pipeline, which will...

The leaders of Russia and Germany gave their blessing yesterday to a gas pipeline deal that cements Berlin's energy ties to Moscow but which Poland and others fear leaves them vulnerable to the whims of the Kremlin.

The deal on the pipeline, which will ship Siberian gas from Russia to Germany, bypassing Poland and the Baltic states, was signed by Russian state gas monopoly Gazprom, German utility E.ON and Wintershall, a unit of German chemical maker BASF.

Russian President Putin and German Chancellor Gerhard Schroeder stressed the strategic importance of the project for the further development of German-Russian relations in the energy sector, the three companies said in a statement.

The deal, worth over four billion euros, was sealed in April when Mr Putin visited Mr Schroeder in his hometown of Hanover. It was finalised by the two leaders yesterday.

Gazprom will take a 51 per cent stake in the partnership, with the German companies each taking 24.5 per cent.

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