Bulgaria surrenders to 'South Stream' pipeline

Russian Prime Minister Vladimir Putin and his Bulgarian counterpart Boyko Borissov have agreed to set up a joint venture for the Bulgarian section of the South Stream pipeline, giving it a competitive edge over the competing Nabucco project supported by the EU. In a telephone conversation yesterday (21 October), Putin and Borissov agreed to establish a Russian-Bulgarian joint venture by 15 November that will conduct a feasibility study for the Bulgarian section of the South Stream pipeline.

The two leaders also confirmed their commitment to completing construction of the Belene Nuclear Power Plant ( NPP) and discussed the possibility of attracting third countries to the project, according to a statement published on the Russian government's website. During negotiating with Sofia, Moscow has been pushing forward its energy projects in Bulgaria as a package (see 'Background').
According to sources cited by Bulgarian daily Standart, Putin and Borissov will meet on 15 November to sign the deal, which is expected to include steps for building the Belene NPP. The venue of the meeting is not yet known.

The telephone conversation appears to mark the end of Borissov's strategy of giving equal treatment to the competing South Stream and Nabucco projects. It could also herald defeat in the prime minister's attempt to reduce his country's dependence on Russia for energy.
South Stream is designed to achieve full control over Bulgaria's gas pipeline network, experts warned recently. While Nabucco is stumbling over legal obstacles to laying its pipes on Bulgarian territory, its Gazprom-backed competitor, through the recent so-called 'Varna deal', includes a compromise solution for transporting some of the gas from South Stream via the existing Bulgarian gas pipeline network.

News source: EurActiv link: article