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. Last Updated: 07/27/2016

Blue Stream Receives Loan Guarantees

Italy's SACE export credit agency will guarantee loans for construction of the Blue Stream gas pipeline to Turkey, Gazprom said Wednesday, signaling lending would finally begin for the project.

SACE, which leads a group of European export crediting agencies, will guarantee $1 billion to Gazprom from a pool of banks led by Mediocredito Centrale Spa, Banca Commerciale Italiana and West Merchant Bank, Gazprom said in a statement.

The section of the 1,200 kilometer pipeline under the Black Sea will cost $1.6 billion.

The remaining $600 million will be lent by a consortium comprising Mitsui, Sumitomo and Itochu under guarantees of Japan's Ministry of International Trade and Industry and the Japan Bank for International Cooperation, the statement said.

Meanwhile, Slovakia's monopoly gas transporter SPP, slated for privatization later this year, said it wanted to work with Gazprom on building a new pipeline to bypass the Ukraine, the Slovak daily Pravda reported Wednesday.