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Rosneft Pens Deal With Hellenic Petroleum

Igor Sechin of Rosneft
Igor Sechin of Rosneft (RT)

Russia oil giant Rosneft has signed an aggreement with Greece’s Hellenic Petroleum on the terms of supplies of oil and oil products to Greece, in a ceremony held after talks between Russia's President Vladimir Putin, and Greek Prime Minister Alexis Tsipras. 

According to the news from Athens, the agreement will see cooperation in between the Greek and Russian partners, which will lay the groundwork for direct contracts with Hellenic Petroleum on supplies of oil and oil products to Greek refineries. The agreement also gives Rosneft a potential to realize oil products manufactured at Hellenic Petroleum’s oil refineries for bunkering and for trading. This will in turn enable Rosneft to raise economic efficiency of sales of oil and oil products, which will help its partner via more attractive prices and flexible supplies formats. Rosneft President Igor Sechin (feature image) had this to add: 

"These agreements open up wide perspectives for further development of cooperation with Hellenic Petroleum. Along with creating an extra channel of product sales, potential direct contracts will help us strengthen positions of Rosneft’s trading division. The Greek partners, in turn, will have a guaranteed channel of supplies of high-quality energy sources at competitive prices."

Hellenic Petroleum is one of Greece’s biggest corporations, with an aggregate capacity of its plants in Greece (in Aspropyrgos, Eleusis and Thessaloniki) of some 17 million tons, or about 65% of the country’s entire oil refining output. The country however exports oil products roughly 15.5 million tons (2014), as compared to 3.6 million tons of imports (2014). 

Also during these meetings, Russia's President Putin expressed the hope that Russian-Greek relations will not depend on time-serving trends in domestic politics and the projects that have been agreed on during the ongoing visit will be implemented. Mr. Putin added: 

"I’m pleased to say that in Russia and Greece the question of developing interstate ties has acquired a supra-political nature and is independent of current political trends. Today’s visit was very successful and business-like; we agreed on many things with the prime minister and had a good, meaningful conversation with the president. We do hope that the representatives of your party in parliament will support today’s initiatives of yours and promote the development of Russian-Greek ties in every way."

According to local media reports, Russian state-run companies are either interested in a possible tender for the further privatization of EL.PE – the biggest refinery group in Greece – or the Greek government is trying to attract Russian interest for a wide-ranging privatization program that institutional creditors have repeatedly demanded. Greek Prime Minister Alexis Tsipras told Sputnik International: 

"As for the energy sector, in addition to the recent Edison-DEPA-Gazprom deal, another important agreement will be signed today between the Rosneft and HELPE companies."