KEYWORDS TODAY:   UkraineDonetskSouth Stream

Gazprom Surprised, Disappointed at EC Stance on South Stream

Business » ENERGY | December 6, 2013, Friday // 14:37| Views: 1267 | Comments: 15
  • Send to Kindle
Bulgaria: Gazprom Surprised, Disappointed at EC Stance on South Stream Photo by EPA/BGNES

Gazprom has expressed disappointment at the recommendation of the European Commission for the revision of bilateral agreements on the South Stream gas pipeline project.

"It is customary for trans-border investment projects to be supported by intergovernmental agreements in order to achieve security and stability for investors," according to a statement of Gazprom's press office, as cited by the Bulgarian Telegraph Agency (BTA).

According to the media statement, Gazprom is not a party to these agreements, whose texts have been accessible for years.

"This is why we are surprised and disappointed by the fears of the European Commission expressed just now, when the construction works are underway," the statement says.

"This is an inappropriate moment, taking into account that, several countries have declared the South Stream gas pipeline project a national priority," Gazprom points out.

The press release was issued in response to a recent recommendation of the EC that the intergovernmental agreements between Russia and EU Member States on the project be renegotiated in order to make them compliant with EU law.

The EC threatened infringement proceedings against EU countries on the route of the pipe unless they took steps to make the agreements legally compliant.

"The construction of the gas pipeline will proceed according to schedule and in full compliance with local legislation and international standards," Gazprom assures, adding that the regulatory issues related to EU law could be clarified alongside that process.

The Russian energy giant noted that it had reached agreement on the exemption from the EU's Third Energy Package legislation for the Nord Stream project and South Stream could also be granted an exemption.

Energy » Be a reporter: Write and send your article
Tags: Gazprom, South Stream gas pipeline, Third Energy Package, bilateral agreements, European Commission, EU law All Are Welcome! Join Now!

Leave a comment

» To the forumComments (15)
George Zheliazkov - 9 Dec 2013 // 01:54:04

BTW econo-babymind,
You will never be able to understand me. Basically you don’t know how much you don’t know. The more you learn and the more you know the more you’ll be able to comprehend how much you don’t know!

George Zheliazkov - 9 Dec 2013 // 01:29:28

No econononosense, I’m a lazy bureaucrat from Brussels and I work for the EU…..
Collecting a fat paycheque from the dumb EU taxpayers……

Why they even chose city like Brussels? This capital city can’t even govern its own country and they choose it for the governing of Europe.
It’s a bad example when Belgium is falling apart to try to unite Europe, don’t you think….

Yane - 8 Dec 2013 // 22:31:33

Seedy, seek help.

Economiser - 8 Dec 2013 // 21:07:40


Could you be honest as to tell me what is it that you do for a living? I can't imagine someone that writes the nonsense and incoherent arguments that you write to have a prominent job exporting or trading with the CIS or China/Asia.

I think your name sounds familiar, do you work in KAT?

Pessimistic - 8 Dec 2013 // 20:44:51

I remember back in the old times when I had the dream job. Worked in a factory where we didn't work, smoked and drank rakia all day and had a guaranteed job and two weeks paid holiday in the Black Sea. My friends worked in a collective farm and did the same as me. We exported mediocre stuff to Russia and they sent us oil, more than we needed and then we re-exported that and made money. It was all wonderful, I remember those days with great pleasure.

Problem is I was living in la-la-land. In today's world our industry and our agriculture cannot compete. We can't even compete with the Greeks and Turks in agriculture, that's why we are flooded with their mediocre tomatoes and cucumbers.

I wish I could blame it on someone - the EU, the USA, the Russians, etc. But the problem lies with me and with this country. We either shape up and compete in today's global economy instead of complaining and moaning and blaming someone for our problems or we become another shitty and mediocre country the world gives three fucks about and we suffer the consequence.

sa-sha - 8 Dec 2013 // 12:55:54

"Don't despair, in the next two to three years Europe will be strong again and Bulgaria will be enjoying the benefits of being a member of the largest trading bloc in the world"------sorry to interfere.....yeah, think that "Center for the Study of Democracy" and "Centre for Liberal Strategies" (financed by...;-) do share this optimism. Still Bg membership in EU can hardly persuade in the coming "enjoying the benefits". The former netto-exporter of agro-products and electricity, today Bg is the netto-importer (more than 90% of fruits and vegetables are imported). Agriculture is ruined. Industry...well, Bulgarians know better. Jobless increased (since 2007) by almost 2 times. Mass emigration. Mortality rate exceeds the birth one by 1,5 times...........Something is rotten in the EUnited family, at least for Bg, no?

Economiser - 7 Dec 2013 // 19:45:53

Yane, I think after reading some of your past posts, no response is necessary.

Brain dead individual!

Yane - 7 Dec 2013 // 19:04:41

Lol economizer did u really write that in just a few years the west will loose all its debt n its happy happy time for everyone? Lay down the booze plz...

George Zheliazkov - 7 Dec 2013 // 17:31:44

Continued… for econo…
3. Bulgarians are not stupid people but the population is way too insignificant and given that EU philosophers like you are messing up with their heads and stirring friction the country ended up being in a despair.
Yes there are opportunities for them in Russia and Asia and they should focus on that.
“I think you need to think before you write nonsense George. I understand you have good intentions and it's discouraging to see your homeland in an economic slump and your countrymen suffering. Don't despair, in the next two to three years Europe will be strong again and Bulgaria will be enjoying the benefits of being a member of the largest trading bloc in the world.”
Again an absolute naïve observation and analysis of my postings.
The EU will never be “strong again” and Bulgaria will never get any benefits from the EU! That “largest trading bloc” will very soon be surpassed by China and the US and may even soon collapse if it doesn’t realize where the new growth will be coming from. Namely the emerging markets!

George Zheliazkov - 7 Dec 2013 // 17:30:29

Thanks for the basic lessons on Economy. I read your baby stuff and wonder what kind of a naive mindset can produce such nonsense.
Ok let’s clarify….
1. Sure there is a boom and bust but Europe and the EU part of it particularly have no way of getting out from this bust if they don’t increase trade with the emerging markets! Countries like Spain, Portugal, Italy, France, Britain, Belgium, Holland and etc. have way too stagnated and outdated economies without any predisposition for future growth! Bulgaria will NEVER grow with 7% anymore. The country doesn’t have the population, skill force and investment climate for such a growth! Greece is on the right track heavily increasing trade and tourism with China. Europe (the EU) will be in a stagnation forever (a mediocre 1% - 2% growth!) and in and out in your bust “boom” cycles.
First don’t you dare to compare US and EU economies. America’s major problem is their giant debt. Other than this their economy is a way better structured and fine-tuned system. Way more flexible and risk awarding system! Needles to mention that they will have problems also being choked by their unions, high corporate taxes, labor costs, regulations, poor education, inappropriately skilled labor force and etc..
US will be stagnated also from now on with some mediocre growth, which you BTW misrepresented at 3.6% annually! That growth was for the third quarter only and the fourth quarter is expected to be in the low 2% where the final annual growth will average.

2. The growth is NOT coming to a halt! Yes China is changing its economy but their average growth will still be at 7.5%! Which explained in a more comprehensive example is a growth of a trillion dollars annually! Just imagine that China is adding one Canada to its economy every year! Russia is changing also and moving its economy away from gas and oil dependence. The new large consumers of oil and gas will be in Asia and China being the largest oil consumer already will continue to grow its consumption.

Economiser - 7 Dec 2013 // 12:55:05


I read with interest your posts (or should I call them rants) about trading with the East and how the EU has brought nothing but misery to Bulgaria. Just a few points:

1. In Economics there's a term called boom and bust and it's a cyclical phenomenon. Europe has been going through a deep recession from which it is now only beginning to emerge out of. Bulgaria grew strongly in 2007 and 2008 after joining the EU (over 7%) and then obviously was heavily impacted by the EU recession given that Greece was the largest investor here. This will end George, Europe will not be in a recession forever. All countries go thru this, it's absolutely normal in economics. The US went down heavily too but it's economy is now growing about 3.6% per year and it is creating about 200,000 jobs per month. Europe will be seeing the same phenomenon in a couple of years.

2. Asia and Russia have been growing strongly in the past decade but that growth is now coming to a halt particularly in China. They are moving away from an export model (they are becoming increasingly uncompetitive) and centering on their internal market. Russia has two major weaknesses - it's population is decreasing at a very alarming rate and its economy is highly dependent on oil & gas. The discovery and production of shale oil/gas in America and in Europe will only lead to lower prices and that will strongly impact Russia in the short to medium term.

3. The Bulgarians are not stupid people who are just sitting on their asses waiting for Europe to improve so that they can trade again with them. They have been actively looking for opportunities in both Russia and in Asia. The problem is that Bulgaria is not very competitive globally. Its only strongly performing sectors nowadays are IT and agriculture. In terms of IT the Russians are highly advanced and so are the Chinese or Filipinos. Why would a Russian company hire a Bulgarian company if they can hire someone locally using their own language at an equal price to a Bulgarian company? Why would a Russian investor hire a Bulgarian company as a contractor to build a building or mall in Russia when they have good local talent at low prices speaking their language? For agriculture Bulgaria naturally has a competitive advantage in selling in the EU because there are no duties or tariffs and because logistically it is a lot easier and there's a global market where multinationals like Cargill or ADM buy Bulgaria's wheat, sunflower or rapeseed and export it themselves.

I think you need to think before you write nonsense George. I understand you have good intentions and it's discouraging to see your homeland in an economic slump and your countrymen suffering. Don't despair, in the next two to three years Europe will be strong again and Bulgaria will be enjoying the benefits of being a member of the largest trading bloc in the world.

sa-sha - 7 Dec 2013 // 12:22:36

"And if the protests continue...then they should invite in the Red Army"-----nice idea!;-)...but it looks like Bulgarians
are already fed up with "Those damned Russians" dumplings. And then: why to invite another devil, if there is one already in ( Novo Selo,say ;-)...........................

George Zheliazkov - 7 Dec 2013 // 06:21:21

Yeah Piccadilly and cie…
You keep on bullshiting there and keep on staying hungry, miserable and unhappy dreaming about some European utopia….
There are few things you must understand you bunch of dreamers which is…. that self obsessed snobbish French and Brits for example will always treat you like crap. They don’t even want you in their countries and etc. The other very major thing you need to understand is that the EU is in a GIGANTIC trouble. Don’t expect anything from countries like Spain, Portugal, France, Britain in many ways Italy, Holland, Belgium.(can anyone of you there explain me how we fix those economies???)
Germany basically is barely keeping that union going and so do on a smaller scale the Scandinavian countries.

Agent, the sooner you and your Euro friends forget about the red army and the communist past the better that continent will be. Stop digging in that shit because soon China by itself only will outgrow the economy of your “mighty” EU friends.
Face reality and start making money because very soon your outdated western friend will end up being the third world themselves!

The only option for prosperity available to your beloved EU is INCREASED investment and trade with all of Eastern Europe and Asia! Otherwise they are all doomed to fail,

Agent Piccadilly - 7 Dec 2013 // 04:13:52

Gosho is right - the regime should immediately announce their withdrawal from Europe and re- align with our Russian comrades. And if the protests continue and our government doesnt have the guts to take action themselves, then they should invite in the Red Army to deal with these counter-revolutionary cockroaches.

Georgi Zheliazkov - 7 Dec 2013 // 00:01:16

You see it's the nasty little politics behind all this. The old " Divide and conquer" attitude . That's why they create all that mess in Ukraine.... Financial manipulation and dependancy is the name of the game. Hurting Russia's VSOP and influence is their main objective. Come with us, become an EU member and then be controlled and regulated by our laws.
Ok some examples:
Since its EU membership Bulgaria didn't see any significant growth or positive changes, at the same time non member countries like Turkey, Russia, Bellorussia, Ukraine and etc. nearly doubled their GDP by having the independence and sovereignity of their countries. Russia now has the largest European economy and Turkey has an economy similar to that of Canada.
It is useless to even mention the growth of Asia with whom Russia will inevitably increase trade and cooperation if the EU continue to be narrow minded and short sighted.

Bulgaria news (Sofia News Agency - 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." (Sofia News Agency - 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