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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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