OREANDA-NEWS. December 20, 2007. The Protocol on establishment of the International Development Company "Burgas-Alexandroupolis" and its registration in Netherlands was signed on December 18, 2007 in Transneft's office in Moscow, the company's press service reported.

The Balkan pipeline is reported to be 285 km long in total, with the initial capacity of up to 35 million tons annually and is expected to boost up to 50 mio tons. It supposed to ease situation at Bosporus bottleneck going form Bulgarian Burgas to Hellenic Aleksandroupolis.

The document was signed by the Greek Ministry for development Khristos Folias, General Director of JV  HELPE S.A.-THRAKI S.A, Christos Dimas, chairman of board of directors of "Project Company "Burgas-Aleksandroupolis BG" Stefan Gunchev and General Director of "Pipeline Consortium Burgas-Aleksandroupolis", Dmitriy Evstratov. The ceremony was witnessed by Russia's deputy Minister gor industry and energy Andrey Dementiev, President of Transneft Nikolay  Tokarev,  President of "Gazprom Neft". Aleksander Dyukov, Ambassador of Bulgaria Plamen Grozdanov, first secretary of the Hellenic Embassy Dimitrius Ioannu, diplomats and experts involved in implementation of this project.

The tripartite intergovernmental Agreement between Russia, Bulgaria, and Greece was signed on the day of March 15, 2007 in Athens to consolidate the International Project Company - the consortium where Russia will own a 51% stake in it, presented by Transneft,  Rosneft and Gazprom Neft incorporated into Burgas-Alexandroupolis Pipeline Consortium LLC in early 2007. The interest of the Bulgarian project company Burgas - Alexandroupolis BG in the project is 24.5 %; a similar stake will be held by the Greek party (23.5 % by the companies Hellenic Petroleum and Thraki; 1 %, by the republic's government). According to agreement reached governments of Bulgaria and Greece undertake to accord favourable tax treatment for IPC and Russia in turn, will guarantee the pipeline capacity.