Home » Business » Russia insisted on a clear position of Bulgaria on “South Stream” by the end of November – 2024-09-21 13:01:52

Russia insisted on a clear position of Bulgaria on “South Stream” by the end of November – 2024-09-21 13:01:52

/ world today news/ Russian President Vladimir Putin questioned the sovereignty of Bulgaria in his speech in the Turkish capital, Ankara, where he announced the closure of the South Stream gas pipeline project.

Such an opinion was expressed by experts in the morning block of BTV, when an official position of representatives of the Bulgarian government is still missing.

Russia is stopping the construction of the South Stream gas pipeline because of Bulgaria, Putin said during an official visit to his Turkish counterpart Recep Tayyip Erdogan. “We cannot start building the underwater section without permission from Bulgaria. It would be ridiculous to reach the Bulgarian shore and stop,” he pointed out. Soon after Putin’s statement, the head of Gazprom, Alexey Miller, announced in Ankara that the project was officially closed. The Russian president also accused the European Commission of sabotaging the gas pipeline.

“We believe that the position of the European Commission is unconstructive. And if Europe does not want the South Stream project to be implemented, then it will not be implemented. We will redirect the flow of our energy resources to other regions of the world and accelerate the implementation of liquefied gas projects,” added the Russian president.

Putin even suggested that Bulgaria seek compensation from the European Union for lost benefits from the suspended project. According to him, Bulgaria will lose EUR 400 million annually from transit fees alone.

Economist Vladimir Karolev, adviser to the new economic minister Bozhidar Lukarskiwas adamant that the amount quoted was not correct. “I have seen the financial plan of “South Stream” and there are no such numbers in it – the annual profit is much smaller, and costs must be deducted from it as well,” stressed Karolev. “About BGN 50 million have been spent on the project – half from Bulgaria and half from Russia,” he added regarding the expenses that have been incurred so far and will be lost.

“I am personally offended when someone questions the sovereignty of Bulgaria. It is true that we are not a strong player, the weakest in Europe, but if I were the prime minister, I would immediately demand an explanation,” Karolev also stated.

Vladimir Putin surprised everyone, he said former energy minister Traicho Traikov. “Obviously, this is a one-man decision by President Putin, who is trying to get out of international isolation by flexing his muscles in front of the West. The MPs are very surprised, but they react as restrained as possible, the head of Gazprom does not speak in more than one sentence, and the Minister of Energy, Alexander Novak, simply admitted that the decision was unilateral,” Traikov recalled.

BSP MP Zhelyo Boychev expressed a contrary opinion. “Several times the Russian side insisted on a clear position of Bulgaria on the project. The deadline for this position was the end of November,” he explained.

“It is quite normal in the Russian country after years of waiting to find an alternative – the gas route will always find one. The responsibility to the generations is to realize such type of large projects”, Boichev insisted.

He expressed “extreme disappointment” at the termination of the project and called it “a betrayal of the future generations of Bulgaria”.

“Blue Stream”, which was implemented at the end of the 1990s, has surrounded us. Bulgaria, from a country that transits gas, will become a country that receives gas, probably from Turkey,” predicted the MP from the BSP.

According to Zhelyo Boychev, the realization of “South Stream” corresponds to “the national interest of Bulgaria”. He expressed the thesis of his party and the “Oresharski” cabinet about the benefits for the country of the possible opening of jobs and the work for dozens of Bulgarian companies.

“Bulgaria will once again not take advantage of its geographical position. There would be many more people to work – many Bulgarian companies would be involved. We sought a solution to overcome this contradiction with European legislation. The national interest obliges the elite to ensure that this pipe passes through Bulgaria,” pointed out Zhelio Boychev.

The construction of “South Stream” began in 2012 and was expected to be completed and put into operation by 2018. However, the European Commission came out with an opinion that the project is contrary to the requirements of the Third Energy Package of the European Union due to a conflict of interests. According to Brussels, the same owner cannot hold the gas pipeline and supply it with gas. In addition, the EC had objections to the conduct of public procurement procedures.

Traicho Traikov pointed out precisely these problems as arguments against the realization of the project. “I, as a minister, believed that this project could be good for Bulgaria if it was negotiated properly. “With the Oresharski cabinet, it was done so that it was not profitable for all Bulgarians, but for 10 people,” he said.

“The EC had remarks about compliance with energy legislation and compliance with competition procedures. While they were being resolved, Mr. Putin decided that it was no longer important to him,” the former energy minister also commented.

What’s next

Economist Vladimir Karolev recommended that the principal of the company “South Stream” – Bulgaria – Bulgarian Energy Holding (BEH) request an official position on the termination of the project. “We do not know exactly what Putin means. There is an intergovernmental agreement between Russia and Bulgaria and if this decision is Finally, the employees of the Bulgarian company, where a lot of money is spent on salaries, should be put on leave today,” commented the economist.

“This is an example of Russia’s attitude towards negotiations with Bulgaria. If someone claims that the suspension of the project is Bulgaria’s fault, Bulgaria has many reasons to claim that it is Russia that is stopping it, and the dispute should be resolved by international arbitration,” Traicho Traikov explained.

The former energy minister acknowledged Turkey’s role as an important player in the region, but noted that Putin’s decision will not only bring him positives. “Putin’s choice is not accidental, because Turkey is a major player. The problem is that it is not the first choice. Dependence on Turkey is a little better than dependence on Ukraine,” Traikov commented.

He recalled that in the deal with China, Russia months ago accepted conditions that it had refused for 10 years and became “some kind of energy colony of China”.

“The pipes would make Bulgaria an important place on the map of Europe, and it is important that they pass through here,” insisted Zhelyo Boychev from BSP in the end.

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