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Gazprom says no bargain for South Stream gas pipeline

09. December 2009. | 10:02

Source: Dnevnik

Russian state-run giant Gazprom said it would not bargain for the South Stream gas pipeline project, several days ahead of the meeting of the Bulgarian-Russian economic commission, which will discuss the two countries’ common energy projects.

Russian state-run giant Gazprom said it would not bargain for the South Stream gas pipeline project, several days ahead of the meeting of the Bulgarian-Russian economic commission, which will discuss the two countries’ common energy projects.

Gazprom’s tone seems all the more surprising, given that until now South Stream seemed the most undisputed project, compared with the construction of the Belene nuclear power plant and the Burgas-Aleksandroupolis oil pipeline.

The meeting in Sofia will be the first after the meeting of Prime Ministers Vladimir Putin and Boyko Borissov in September.

“An opportunity like this comes once in a lifetime and we are convinced that common sense will prevail in Bulgaria about this project”, Gazprom’s spokesman Sergei Kupriyanov said. The support for the project is rising in all Europe, and it is getting a pan-European dimension, Kupriyanov added. “Bulgarians have not dropped the project, but they will need time to think. We are convinced that South Stream is not a project one can bargain on”, the spokesman said.

The warning confirmed the statements of Dnevnik’s sources, according to which the Russian side wanted to dictate the decisions of the joint project company for South Stream. Bulgarian Energy Holding (BEH) and Gazprom will hold equal stakes in the company.

In addition, Bulgaria will insist on guarantees that the construction of South Stream will not hamper the current gas transit for Greece and Turkey.

If the transit is affected or stopped, state-owned Bulgartransgaz will lose some BGN 100 million in transit taxes, paid by Gazprom. In May Gazprom pledged to construct a new network in Bulgaria for South Stream, and in case it uses the old one, to pay transit taxes.

However, according to Bulgarian experts, the issue of whether Bulgargaz will be able to sell the gas from South Stream to consumers in the country still remain.

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