The Nabucco pipeline would bring gas from Central Asia to Europe, reducing the region's energy dependence on Russia.

Prime Minister Ferenc Gyurcsány pressed for the European Union to support the project with €2 billion, including €200 million - €300 million in advance financing in the form of a capital injection at the summit. The EU support could be supplemented with loans from the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD) to cover the better part of the investment, he said.

EIB chairman Philippe Maybach said the bank was prepared to finance up to 25% of the cost of building the pipeline.

EBRD chairman Thomas Mirrow said the bank could participate in principle, but must first see an inter-government agreement on the pipeline signed.

The construction of the 3,300-kilometer Nabucco pipeline is expected to cost €9 billion - €10 billion, according to the latest estimates.

Speaking on the sidelines of the summit, EU Energy Commissioner Andris Piebalgs said that although the EU could provide loans and guarantees, it should not consider providing capital financing, Reuters reported. The EU can facilitate getting loans in such a difficult situation of the credit crunch, but it would not go beyond that, because then it turns into a public private partnership instead of a consortium's project, he explained.

Concrete answers have to be given for questions in May, Piebalgs told the meeting. If not, the project could be put in danger. The final text of the inter-government agreement on the pipeline should be prepared and countries participating in the project should issue their declaration of support by the end of March in order for the pipeline to be built as quickly as possible, he added.

There are still legal problems with the project that can only be solved if the affected member states give up a degree of sovereignty at the union level, Piebalgs said.

In addition to diversifying its energy sources and the ways they are delivered, it is important for the EU to build up a crisis management mechanism: there should be gas stores and a well-developed, well-connected gas network and gas market, Piebalgs said. Only then can the speedy and appropriate action be taken, if necessary, Piebalgs said. (MTI – Econews)