Bulgaria Warms up on Burgas-Alexandroupolis, Pays EUR 5 M - Report

Energy | July 26, 2010, Monday // 14:41|  views

Environmental concerts were the main arguments recently brandished by the Bulgarian government agianst the projected Burgas-Alexandroupolis oil pipeline. The photo shows port of the town of Primorsko in the Burgas bay. (BGNES)

To top that, unclarity on the project was boosted by rumors circulated about a replacement of the manager of the Bulgarian partner company in the joint Trans-Balkan ventrue.The Bulgarian government is well aware the Burgas-Alexandroupolis oil pipeline project is profitable for Bulgaria, vice-president of Russian oil company Transneft Mikhail Barkov said, as quoted Monday by RIA Novosti.

“Our Bulgarian partners continue studying the content of the project in regard of its profitability and its environmental risks, but as far as we are aware, there is understanding on their part that leaving the project is not to their advantage,” Barkov is reported as saying.

In other important news, Barkov announced that the Bulgarian side had agreed to pay EUR 4.88 M dues on the project.

Barkov took part in negotiations on the project in Sofia, 22-23 July, when he met Bulgarian Minister of Finance Simeon Djankov. The Bulgarian party agreed that it had to those dues to pay on the project and committed to do so.

Another important development of the meeting was the agreement to conduct a presentation of the “financial model of the project” in the first ten days of August.

The Transneft vice-president characterized talks as “good and constructive.”

Transneft had repeatedly complained that Bulgaria is continually failing to finance its part of the project, Mikhail Barkov said.

A RIA Novosti source commented that Bulgaria's debt to the Burgas-Alexandrouplis project comprises of corporate debt and debt to shareholders. According to agreements corporate debt is to be paid first, while debt to shareholders is to be paid out in installments during 2011.


Just last Sunday - less than a day ago - Bulgarian PM Boyko Borisov declared yet again the joint Russian project is now defunct over certainty of a negative environmental impact assessment.

On the other hand Thursday Vladislav Emelyanov - CEO of Trans-Balkan Pipeline, the joint company of Bulgaria, Greece, and Russia set up to construct and run the controversial project - reported on "good will and understanding" on the part of the Bulgarian government regarding the pipe.

To top that, unclarity on the project was further boosted by rumors about a replacement of the manager of the Bulgarian partner company to the Trans-Balkan joint venture.

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Tags: Russia, Burgas Alexandroupolis Oil Pipeline, Burgas Alexandroupolis, Simeon Djankov


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