Bulgaria’s Foregone Revenue from South Stream Hard to Forecast – Energy Minister

Bulgaria’s foregone income of EUR 400 M a year allegedly resulting from Russia’s decision to drop South Stream hasn’t been mentioned in the contracts relating to the project, a Bulgarian cabinet minister said on Wednesday.  

“The contracts I’ve seen don’t mention the transit fees and the dividend Bulgaria was supposed to receive, so it’s impossible to forecast what the potential loss could have been,” Energy Minister Temenuzhka Petkova told Nova TV channel.

Former Bulgarian Energy Minister Rumen Ovcharov on Tuesday estimated Bulgaria’s losses from the scrapping of South Stream at around USD 600 M – a figure which Petkova described as “hypothetical”.

Bulgaria will certainly suffer losses, if the project is abandoned or if there is risk for this to happen, including the potential loss of fresh investment and new jobs involved in the construction of the gas pipeline, Petkova said.  

Petkova and Tomislav Donchev, Bulgaria’s Deputy PM in charge of absorption of EU funds and economic policy, will discuss South Stream with top EU Commission officials in Brussels on 9 December.

With South Stream being a European project, Bulgaria will find it difficult to oppose the Russian side separately, “so we’ll rely on Brussels to defend us”, Petkova said.

She also said Bulgargaz has already paid nearly 100% of its dues to the Russian side for the supply of Russian gas in November and the upfront payment of some USD 90 M in three instalments for gas supply in December is also underway according to contract.

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