Bulgaria Sold Woodland to South Stream Despite Freeze of Activities

Business » ENERGY | August 1, 2014, Friday // 09:43| Views: | Comments: 1
  • Send to Kindle
Bulgaria: Bulgaria Sold Woodland to South Stream Despite Freeze of Activities Bulgaria's government in resignation maintain that the project is still being provisionally frozen. Photo by BGNES

Bulgaria's Ministry of Agriculture has confirmed that 359 da of woodland were sold to South Stream Bulgaria in July.

The ministry's press office made the announcement after the investigative website Bivol.bg published a report on the deal.

The latest developments also came against the background of outgoing Prime Minister Plamen Oresharski's earlier assurance that activities on the construction of South Stream will be halted after the European Commission raised its doubts about the project's compatibility with the Third Energy Package and announced it would start an infringement procedure.

South Stream Bulgaria, a 50-50 joint venture of the Bulgarian Energy Holding (BEH) and Russian energy concern Gazprom, purchased the land for nearly BGN 10.78 M (EUR 5.51 M).

A square meter of the area was therefore worth EUR 15, below usual prices.

In comparison, First Investment Bank earlier paid BGN 207 (EUR 105) per square meter to buy land in the same region to later grant South Stream servitude to host the pipeline.

The area near the Black Sea city of was sold on July 21, just two days before the socialist-liberal cabinet stepped down.

Agriculture Ministry officials asserted all legal procedures had been observed during the deal.

They remind that South Stream's Bulgarian stretch was declared an object of national importance, a move the government made in 2011 to exempt the pipeline from a moratorium imposed on land within the A and B development zones near the Black Sea coast.

Energy » Be a reporter: Write and send your article
Tags: South stream, Agriculture Ministry, woodland, land, Varna, European Commission, Plamen Oresharski, south stream bulgaria, Bulgarian Energy Holding, BEH, Gazprom
Expats.bg All Are Welcome! Join Now!
Please, log in to post a comment.
» To the forumComments (1)
Warfou2 - 6 Aug 2014 // 15:59:22

So 30.000 leva per dekar is a bad price?
We are talking about woodland.

30.000 leva per dekar sounds like a great deal to me...

Please provide some proof and more details about the Fibank deal because that would be 7 times more which would be 210.000 leva per dekar...

I mean...

Bulgaria news Novinite.com (Sofia News Agency - www.sofianewsagency.com) is unique with being a real time news provider in English that informs its readers about the latest Bulgarian news. The editorial staff also publishes a daily online newspaper "Sofia Morning News." Novinite.com (Sofia News Agency - www.sofianewsagency.com) and Sofia Morning News publish the latest economic, political and cultural news that take place in Bulgaria. Foreign media analysis on Bulgaria and World News in Brief are also part of the web site and the online newspaper. News Bulgaria