Russia could pay the Bulgarian share for the construction of the Burgas-Alexandroupolis Oil Pipeline.

This was reported Wednesday by the Russian business newspaper RBK Daily, which cites Vladimir Nemtsov, a representative of the Burgas-Alexandroupolis Consortium and Vice-President of the Transneft Company.

According to Nemtsov, Russia could pay the Bulgarian share - 24,15% of the total expenses which corresponds to the ownership share of the country - if that is necessary and the Bulgarian side agreed.

This move would be an attempt to keep Bulgaria in the project after last week the new Bulgarian Finance Minister, Simeon Djankov, said the country did not have the funds for such capital investments as the construction of the oil pipeline, and might have to reconsider its participation in the project.

The new Regional Development Minister, Rosen Plevnaliev, in turn said the Burgas-Alexandroupolis pipeline was "economically unsound".

The pipeline connecting Burgas on the Black Sea and Alexandroupolis on the Aegean is supposed to transport Russian and Caspian oil around the Bosphorus Strait. It is expected to cost USD 1 B, and to be completed by 2011.

Russia has a share of 51,7%, whereas Bulgaria and Greece each have 24,15%. Bulgaria signed the consortium contract in January 2008 during a visit of the then Russian President Putin to Sofia.

The RBK Daily cites Russian analysts claiming that Bulgaria's threats to withdraw from the project were aimed at getting better conditions by paying nothing for the construction and still skimming off transit fees.

The Burgas-Alexandroupolis pipeline has been attacked vigorously by Bulgarian environmentalist and civil society organizations; three Bulgarian Black Sea municipalities - Burgas, Sozopol and Pomorie - have voted overwhelmingly against the pipeline construction in local referendums.

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