Bulgarian Energy Minister: Russia 'Ready to Sponsor' South Stream

Business » ENERGY | November 15, 2010, Monday // 12:58
Bulgarian Energy Minister: Gazprom 'Ready to Sponsor' South Stream: Bulgarian Energy Minister: Russia 'Ready to Sponsor' South Stream Bulgaria's Economy and Energy Minister, Traicho Traikov, met Monday with representatives of the Bulgarian Business Leaders Forum. Photo by BGNES

In case Bulgaria faces problems with the financing of its section of the South Stream gas line, Russia can secure an advance amount, without having the right to obtain shares and assets.

The statement was made by Bulgaria's Economy and Energy Minister, Traicho Traikov, who spoke Monday for journalists, after meeting with representatives of the Bulgarian Business Leaders Forum.

It was reported Saturday, during the visit of Russian Prime Minister, Vladimir Putin, to Sofia that the Russian side had declared readiness for advance funding. Earlier Monday, Bulgarian PM, Boyko Borisov, said in an interview for the TV channel bTV, the initial financing will come from the Russian energy giant Gazprom in order for Bulgaria to avoid gaping deficit while the total price to be paid by the country is EUR 400 to 500 M.

Meanwhile, in an interview for the Bulgarian National Radio, BNR, the CEO of the Bulgarian Energy Holding (BEH), Maya Hristova, rejected reports the CEO of Gazprom, Aleksey Miller, had stated his company was ready to provide the initial financing for South Stream.

Traikov clarified the issue had been brought up the bilateral energy talks and it had been agreed on that the financial assistance would not lead to increasing Russian shares or giving Russia ownership on the pipes on Bulgarian territory.

The Minister further explained the exact amount is yet to be determined and forecasted it at EUR 800 M to 1 B.

The financing of the pre-investment study for the construction of the Bulgarian section of South Stream, on which the two sides agreed on Saturday, will be provided by the joint company "South Stream Bulgaria" to be managed by Georgi Gergov, a former member of the Bulgargaz Board of Directors and now member of the Board of the municipal company "Sofia Properties."

We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!

Energy » Be a reporter: Write and send your article
Tags: natural gas, South stream, Vladimir Putin, Boyko Borisov, Gazprom, BEH, Maya Hristova, gas price, Aleksey Miller, Boyko Borisov, Bulgargaz, Traicho Traikov

Advertisement
Advertisement
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