The agreement was signed in Athens on 15 March 2007 and has been submitted to the Government of the Russian Federation for ratification in accordance with article 16 paragraph 1 of the federal law “On the International Agreements of the Russian Federation”.
The purpose of the agreement is to determine the various spheres of cooperation in the construction and operation of the Burgas — Alexandroupolis oil pipeline, a pipeline that has an initial capacity of 35 million tonnes of oil per year and the potential for 50 million tonnes per year.
In accordance with article 2 of the agreement the parties will help found an international project company that owns the pipeline and establishes economic actors (participants) with the following shares in the said company’s shareholder capital:
51 percent for the Russian participant (Limited Liability Company Burgas-Alexandroupolis Pipeline Consortium);
24,5 percent for the Bulgarian participant (Burgas-Alexandroupolis Oil Pipeline — BG project company); and,
24,5 percent for the Greek participant (23,5 percent to companies Hellenic Petroleum and Thraki and 1 percent to the Greek government).