Russia’s Gazprom says loans 2.14 billion euro to TurkStream operator

MOSCOW (Reuters) – Russian gas company Gazprom (MM:) said on Monday it would loan up to 2.14 billion euros ($2.5 billion) to its subsidiary South Stream Transport B.V. which is overseeing the construction of the TurkStream undersea gas pipeline to Turkey from Russia.

The loan will be used to replenish working capital and will carry an annual rate of interest of 3.98 percent. The maturity of the loan is set for Dec. 30, 2023.

TurkStream consists of two lines with an annual capacity of 15.75 billion cubic meters each. The first line, already completed, will be used for Turkish domestic needs.

The second line will run through Turkey to Europe. Bulgaria has said it will be the entry point for the second line of TurkStream.

The pipeline is part of the Kremlin’s plans to bypass Ukraine, currently the main transit route for Russian gas to Europe, and strengthen its foothold in the European gas market.

Gas will start flowing via TurkStream next year, according to Gazprom’s plans.

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