/ world today news/ In connection with the South Stream project and the letters of June 12, 2014 and July 8, 2014, signed by Minister Dragomir, cited by the Minister of Energy of the Republic of Bulgaria Temenuzka Petkova during a regular briefing after the meeting of the Council of Ministers Stoynev we make the following clarifications:
1. The purpose of the two letters is to inform the management of BEH about the letter received from the EC about the initiated criminal procedure and about the recommendation formulated in it that the Bulgarian side “suspend the awarding of all tender procedures related to the South Stream project, as well as to refrain from the conclusion of a contract, as they must comply with EU law’:
Nowhere in the letters does the wording “cease all activities related to the project.”
The letters cannot be considered as an act that stops the South Stream project, but only concern elements of the construction of the gas pipeline system.
2. The exact wording in the letters is as follows:
Letter dated June 12, 2014.
“BEH EAD should take the necessary actions to suspend the awarding of tender procedures related to the construction of the South Stream gas pipeline, the conclusion of contracts on them”.
Letter dated July 8, 2014.
“to suspend the awarding of all tender procedures related to the South Stream project, as well as to refrain from entering into contracts, as they must comply with the legislation of the European Union.”
“It is within the competence of “BEH” EAD, in its capacity as a shareholder, complying with the official notification letter from the European Commission, to take the necessary actions at the corporate level, together with the other shareholder in the project company, taking into account the obligations of our country under The intergovernmental agreement between the Republic of Bulgaria and the Russian Federation on cooperation in the creation of a natural gas transit pipeline”
“The Ministry of Economy and Energy considers the need to ensure the necessary conditions for the implementation of the project and the best possible implementation of the aforementioned Intergovernmental Agreement, making every effort to resolve the issues raised by the European Commission in the process of the criminal procedure.”
3. After the signing of the two letters, the preparatory work for the launch of the project continues – the investment proposal was accepted, the capital of the company “South Stream – Bulgaria” was increased, which allows the preparatory work to continue. The only consequence of the two letters is the non-signing of a construction supervision contract.
4. After these letters, the Acting Minister of the Economy and Energy, Vasil Shtonov, in his capacity as the exerciser of the rights of the state as the sole owner of BEH EAD, examines issues within the competence of the General Assembly of the company and issues the following decision for BEH EAD:
Not to participate in the capital increase of “South Stream Bulgaria” AD, for which permission was given by the Minister of Economy and Energy with protocol No. RD – 21 – 171/ 11.12.2013;
In its capacity as a shareholder in “South Stream Bulgaria” AD, to do what is necessary so that the company does not take any other actions related to the start of the execution of the contract for the engineering, implementation and construction of the gas pipeline.
According to official information of MIE, on the same day, the executive director of BEH sent a targeted letter to Mr. A.B. Miller, chairman of the management board of OAO Gazprom, with a copy to the management of South Stream Bulgaria, with which the management of South Stream Bulgaria is expressly ordered not to take steps to increase its capital and not to take actions related to with the start of execution of the contract for engineering, realization and construction of the gas pipeline.
Later, MIE officially announced that the increase in the capital of the project company “South Stream Bulgaria” despite Stonov’s decision, will be handed over to the prosecutor’s office. The Ministry of Economy and Energy believes that the actions of the management of “South Stream Bulgaria” do not protect the interests of the Bulgarian Energy Holding (which holds 50% of the company) and intends to refer the case to the law enforcement authorities, the department announced. The office of Deputy Prime Minister Ekaterina Zaharieva confirms that this means that the prosecutor’s office will be referred.
#Clarification #information #briefing #South #Stream
