Schroeder
hits back at critics over 'sweetheart' Gazprom deal
AFP
BERLIN
Petroleumworld.com
04 03 06
German former chancellor Gerhard Schroeder defended his decision to
head the supervisory board of the German-Russian gas pipeline project
after his government guaranteed credit for the venture, in an interview
to be published Monday.
Schroeder, who formally took up the new post Friday, told the Handelsblatt
business daily he had been unaware his administration had guaranteed
a credit of one billion euros (1.2 billion dollars) for the Russian
giant Gazprom's Baltic pipeline.
He added that Gazprom had no plans to take the loan.
"I did not know about these proceedings," he said.
"But the key point is that Gazprom has already said that it has
not and will not accept the financing option put forward by the banks.
Thus there will not be a federal loan guarantee for the two German banks."
The economy ministry confirmed Saturday that an inter-ministerial commission
rushed through a "decision in principle" on October 24 last
year while waiting for a new coalition to be formed by now Chancellor
Angela Merkel.
Schroeder said he was only offered the supervisory board post, for which
he will earn an annual salary of 250,000 euros, after he left office
in November.
"I cannot see anything wrong with that," he said.
The four-billion euro pipeline agreement was signed just 10 days before
the German general election in September, at a ceremony attended by
Schroeder and Russian President Vladimir Putin.
Critics in Germany blasted Schroeder's involvement in the project, particularly
in light of the credit guarantee, as a "sweetheart deal" that
muddled his personal interests with those of the country.
"This affair stinks to high heaven," said Guido Westerwelle,
leader of the liberal opposition Free Democratic Party, who is embroiled
in a legal battle with Schroeder over his previous attacks of the Gazprom
job.
Schroeder said in the interview that he believed the deal would help
secure Germany's long-term energy needs.
"Federal loan guarantees are a tried and tested instrument to defend
the economic interests of our country," he said. "That especially
includes a reliable supply of natural resources for German industry."
Schroeder also fiercely defended his personal friendship with Putin
when asked about concerns that the Russian state was becoming increasingly
centralized and authoritarian.
"I am among those who are still of the opinion that the Russian
president assures democratic development in the country," he said.
AFP 04 02 06 1153 GMT
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