European Investment Bank Possible Trans-Caspian Financer

European funding for the prospective Trans-Caspian gas pipeline may include the European Investment Bank (EIB).

Speaking to the Trend news agency, an unnamed source within the European Commission said that a number of financial institutions may be involved in the financing.

"The European Financial Institutions, mainly the European Investment Bank, could potentially leverage support to infrastructure projects, such as Trans Caspian gas pipeline via loans and guaranties," the source said.

This source also told the news agency that negotiations were already underway on this financing.

Earlier this week at the CIS Oil and Gas Summit in Paris, Pierre Morel, EU Special Representative for Central Asia commented that the  EU is willing to fund a good part of the Trans-Caspian pipeline.

Currently, the Trans-Caspian pipeline, which is estimated to cost $5 billion (USD), has a number of possible finance routes available to it, including the EU, and the countries of Azerbaijan and Turkmenistan, two of the route countries of the pipeline.

More recently, Ukraine has publicly given its support to the project, with Prime Minister Mykola Azarov pledging up to ten per cent of the cost of the pipeline at €790 million. This investment would be contingent on the pipeline linking to the Kulevi liquefied natural gas terminal (LNG) terminal in Georgia, the prime minister said.