MOSCOW, March 17 (UPI) -- A financial package backing the Nord Stream natural gas pipeline is a "landmark" paving the way to project reality, Gazprom officials said in Moscow.
There were 26 banks that fell in line with credit agencies to fund the development of the Nord Stream natural gas pipeline through the Baltic Sea.
Members of the Nord Stream consortium -- Russia's Gazprom, Germany's BASF/Wintershall and E.ON Ruhrgas and Dutch energy group N.V.Nederlandse Gasunie -- would take on some of the financial burden as well.
Alexei Miller, chairman of Russian gas monopoly Gazprom, said the package was a milestone that solidified the Russian energy relationship with Europe.
"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," he said in a statement.
Moscow aims to diversify its gas transit options to Europe through Nord Stream. The project avoids politically sensitive territory in Ukraine by passing through the Baltic Sea to Germany.
Nord Stream Managing Director Matthias Warnig said the financial support made it clear that investors saw the project as an "excellent" opportunity.
Nord Stream consortium members will approach investors for the second phase of financing later this year.
Construction on the pipeline is to begin next month. It could start delivering gas to Europe as early as 2011.
