Deputy regional minister Kalin Rogachev and representatives of the Russian and Greek governments ratified yesterday the draft agreement for construction of a 280-kilometre pipeline for transport of Russian oil from the Bulgarian Black Sea port Burgas to the Greek Aegean port Alexandroupolis. The signing of the document took place in Burgas. The final agreement as well as supplementary protocols on construction and investment specifics will be signed in Athens in late February or March. Constructions works are expected to start next year and to continue about one year. The regional ministry estimates that the country will have direct benefits of at least USD35mn per year from transit fees and indirect benefits from job openings and orders to local firms during construction works and oil transportation. The three countries will set up a joint company named International Engineering Company Burgas-Alexandroupolis that will own the pipeline. Russian firms will hold the controlling stake of 51% while Bulgaria and Greece will hold stakes of 24.5% each. Total investments for building the pipeline are estimated at USD 900mn. Some 155 kilometres or 55% of the whole pipeline will cross the territory of Bulgaria . It will have the capacity to transport 35mn tonnes of oil per year with an option for capacity expansion to 50mn tonnes. It is speculated that the Russians will control the ownership of the re-loading port terminal Burgas that will be also used in the alternative project for transit of Caspian oil to the Albanian Adriatic coast. The Bulgarian government insisted to retain full ownership in the terminal to avoid conflict of interests. The final arrangement on the issue is not officially announced yet.