The leaders of Azerbaijan, Georgia, Romania and Hungary have signed the Memorandum of Understanding for the development of the Black Sea Energy submarine cable.

"The fact that Europe will receive electricity from Azerbaijan through Georgia is very good. At this stage, we cannot talk about financial profitability, because we do not know the details of the agreement. However, as the Minister of Finance said, it will be economically beneficial for Georgia. The fact itself is definitely a good thing, our energy security and practically even independence will increase, therefore I welcome it," Revaz Arveladze, professor, honorary president of the Academy of Energy told the Accent.

According to him, in case of an emergency situation in Georgia, it is clear that when you have such a strong connection with your neighbors, you will definitely have the opportunity to receive the electricity.

"So it is a very positive fact," he added.

The Memorandum signing ceremony was held in Romania's Cotroceni Palace. The document was signed by the Prime Minister of Georgia, Irakli Garibashvili, the President of the Republic of Azerbaijan, Ilham Aliyev, the Prime Minister of Romania, Nikolae Chuka and the Prime Minister of Hungary, Victor Orban. The President of the European Commission, Ursula von der Leyen attended the ceremony.

The agreement involves a 1,100-km (685-mile) electric cable of 1,000 MW under the Black Sea, from Azerbaijan to Romania, as part of wider European Union efforts to diversify energy resources away from Russia amid the Ukraine war.

“Given the current security context marked by the military aggression against Ukraine we need to cooperate better and show more solidarity to mitigate common challenges,” Romanian President Klaus Iohannis told the meeting also attended by European Commission President Ursula von der Leyen.

“Our energy co-operation responds to a strategic impetus. It will enhance our energy resilience and ensure diversification of supply and transport routes. It is market driven given increased energy demand in Europe,” Iohannis said.

Von der Leyen told the meeting that the EU’s strategy to turn its back on Russian fossil fuels and diversify towards what she called “reliable energy partners” was working.

She said the EU was ready to provide financial support to the project pending the results of a feasibility study.

“To integrate a growing share of renewables, we need indeed stronger electricity interconnections. This is why the Black Sea energy cable between Romania, Georgia and Azerbaijan is so important,” von der Leyen said.

“It will help reinforce our security of supply by bringing electricity from renewable sources to the EU via Romania and through Hungary.”

Von der Leyen said the Black Sea cable could transform Georgia into an electricity hub and integrate it into the EU internal power market, while it could also help start rebuild Ukraine’s energy system and the country’s reconstruction.

The electricity cable will connect Georgia and the entire South Caucasus to Romania, allowing the export of “green energy” to Europe and the strengthening of mutual resilience.

The EU Commissioner for Neighbourhood and Enlargement Olivér Várhelyi revealed on December 12 that the EU will allocate EUR 17 billion for the economic and investment plan of the Eastern Partnership (EaP), including EUR 2.3 billion aimed at creating the Black Sea strategic submarine electricity cable between Georgia and the EU.