Russia-Europe gas pipeline secures full funding

LONDON (AFP) - The consortium behind the planned Nord Stream gas pipeline from Russia to Europe said Tuesday it had secured a 3.9-billion-euro (5.9-billion-dollar) funding deal from 26 banks.

Shareholders in the consortium will complete the financing of the first phase of building the pipeline, which will go through the Baltic Sea and cost a total of 7.4 billion euros, they said at a London press conference.

"The completion of Phase I financing is a landmark event in the development of Nord Stream and helps take the project from concept to reality," said Alexei Miller, chief executive of Russian giant Gazprom, which is leading the project.

"Nord Stream solidifies the long-standing energy relationship between Russia and Europe, a relationship that has lasted nearly 40 years," he said.

The pipeline will provide "reliable supplies of Russian energy to Europe for many decades to come," he added.

The shareholders -- Gazprom, Germany's BASF/Wintershall Holding GmbH and E.ON Ruhrgas AG and Dutch company N.V. Nederlandse Gasunie -- are providing 30 percent of the total project costs.

"It is clear from Phase I financing that investors see Nord Stream as an excellent investment opportunity," said Matthias Warnig, managing director of the consortium.

"The successful conclusion of the Phase I financing demonstrates that there is genuine enthusiasm for a project that will provide Europe with another major supply route for natural gas," he added.

Construction of the pipeline is to begin in April, with first deliveries to Europe expected next year, Warnig said.