Russian energy giant Gazprom will loan up to €2.14 billion ($2.49 billion) to its subsidiary South Stream Transport B.V., the company responsible from the construction of the TurkStream natural gas pipeline, Gazprom said on Monday.
The company said the loan would carry an annual rate of interest of 3.98 percent with a maturity set for Dec. 20, 2023.
The TurkStream projects consists of two lines each with 15.75 billion cubic meters of capacity.
The first line of the project has been completed and will serve Turkey, while the second line will send gas to Europe via Turkey.
Gazprom is in negotiations with Bulgaria, Italy and Greece for the second line of the project.
Russian President Vladimir Putin announced the TurkStream in 2014, after dropping the South Stream project.
Russia sought alternative routes for gas deliveries to bypass Ukraine and out of this, the TurkStream evolved, opening up a new transit route for Russian gas and helping Turkey's increasing gas demand.
Reporting By E. Gurkan Abay in Moscow
Writing By Murat Temizer