Moscow: Greek prime minister, Kostas Karamanlis, currently in Moscow on a two day visit, may sign up for a $1.7 billion arms deal with Russia. If the arms deal involves production of spare parts in Greece, it would make this Mediterranean nation the first Nato state to produce Russian weaponry and munitions.

Also on the cards for Karamanlis was an important discussion related to the construction of the Burgas-Alexandropolis oil pipeline and the South Stream gas pipeline that will link Russia with Europe.
 
Russia is understandably looking forward to expanding its arms relationship with Greece.
Although a Nato member, Greece has already bought Russian S-300 and Thor air-defence systems. The Greek army is armed with Russian Cornet anti-tank weapons.

On his current visit, Karamanlis would be looking to add over 400 Russian BMP-3 infantry fighting vehicles the inventory of the Greek armed forces. The deal would involve the production of spare parts in Greece. If terms were agreed upon the deal for the BMP-3 would make Greece the first Nato state to produce Russian weaponry or munitions on its soil.

Menawhile, Russian president, Vladimir Putin, speaking after a meeting with Karamanlis in the Kremlin, said that building the South Stream gas pipeline and the Burgas-Alexandroupolis oil pipeline "will not only bring tangible economic dividends, but will improve energy security on the European continent.''

Russia, Bulgaria, and Greece signed a memorandum on the oil pipeline in April 2005. Once completed, the pipeline will pump 35 million metric tons of oil a year (257.25 million bbl), a volume that could eventually be increased to 50 million metric tons (367.5 million bbl).

The South Stream natural gas pipeline will cover over 900 km (560 miles) under the Black Sea from Russia to Bulgaria and supply 30 billion cu m of gas annually to the European Union. Possible routes for the land section, which will pass through Greece, are still being discussed.

Speaking after the talks, the Greek prime minister expressed his enthusiasm for these pipelines and the budding energy cooperation with Russia.

"Our cooperation is advancing rapidly, in particular the procedures linked to the Burgas-Alexandroupolis oil pipeline - a project that will contribute to Europe's energy security and turn our country into an important energy transit corridor. We also discussed natural gas cooperation and the South Stream project," Karamanlis said.

Putin said that during the Greek premier's visit, Russia, Bulgaria and Greece have signed a tripartite protocol on establishing an international project company for the Burgas-Alexandroupolis oil pipeline.

"This document is the penultimate step toward practical implementation of this project."

Karamanlis also said Greece was ready to share its experience with Russia in hosting Olympic Games, and proposed to announce a Year of Russia in Greece and Year of Greece in Russia before the 2014 Winter Olympics, which are to be held in the Russian Black Sea resort city of Sochi.

It's the second visit of Kostas Karamanlis to Moscow, even as Putin has visited Greece three times since 2005. Both the leaders give the impression of having developed a close working relationship.