Going on: Bulgaria decides to push on with South Stream
Bulgaria pushes ahead with South Stream
Bulgaria will go ahead with the South Stream gas pipeline the Economy and Energy Minister Traicho Traikov said today.
The new centre-right government, which took office last week, has said it needs to revise its commitments on major energy projects as they could worsen the budget situation in the country, hit by the global economic crisis and falling revenues.
The new government has said Bulgaria cannot afford to take loans, at a time of tight global liquidity and economic downturn, when it is under pressure to cut public spending and avoid slipping into deficit.
The crisis however will not force Bulgaria to reconsider its participation in the Russian-backed South Stream project due to bypass transit country Ukraine and deliver gas to south-eastern Europe under the Black Sea for now.
The Gazprom-led €10 billion project is seen by analysts as a rival to the EU-backed Nabucco pipeline, intended to cut Europe's energy dependence on Russia.
Bulgaria has signed a broader agreement with Russia over South Stream but is yet to overcome some disagreements about the route and the ownership of the new pipeline on its territory.
Traikov said the Nabucco pipeline had a signed intergovernmental agreement of all participants and a clear financial model, while South Stream still faced problems with the launch of a feasibility study, but that the Sofia will keep its participation on both projects.
"We will continue the work on both projects and we will analyse the result at every step," Traikov said.