The EU's Transport, Telecommunications and Energy Council is set to meet in Brussels on Tuesday, with the latest developments around the South Stream pipeline topping the agenda.

A proposal to create an internal energy market to connect all electricity and gas grids within the bloc will also be under discussion.

Various EU member states were involved in South Stream, a project designed to carry gas to Italy via Bulgaria, Serbia, Hungary and Austria.

But Russian President Vladimir Putin scrapped the project while in Ankara last week, saying the pipes would go to Turkey instead.

Bulgarian Deputy PM Tomislav Donchev and Energy Minister Temenuzhka Petkova are due to represent Sofia in the meeting.

On Monday Prime Minister Boyko Borisov promptly delivered a speech in Parliament to announce Bulgaria would insist that South Stream be continued under the EU rules.

Russia at the same time insists it has already dropped the project, citing Bulgaria's reluctance to host the pipes over EU concerns.

The Transport, Telecommunications and Energy Council is a configuration of the Council of the EU attended by Ministers of Energy. EU Commission Vice President for Energy Union Maros Sefcovic called in the meeting well before Russia's decision, but said last week the ministers would meet regardless of the developments and might adopt a common stance.

Moscow will not attend the talks and is intending to start denouncing intergovernmental agreements on South Stream sealed with various European states.

On Monday energy giant Gazprom also announced the country was setting up a company for the new gas pipeline in Turkey.

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