Bulgaria's new economy and energy minister will travel to Moscow on Thursday, a day after the government decided to abandon plans to build Belene nuclear power plant on the Danube River.

Bulgaria?s government announced on Wednesday it has abandoned plans to build a new, 2000 megawatt nuclear power plant on the Danube River for which it has contracted Russian state firm Atomstroyexport.

The government has proposed that a gas-powered plant is built on the site in Belene.

A Russian-built reactor, which had been ordered for the facility, could now be installed at an existing nuclear plant at Kozloduy.

The Bulgarian Prime Minister Boyko Borisov discussed the issue with the Russian President-elect Vladimir Putin on Monday.

Minister Delyan Dobrev is expected to officially inform Russia of the government's decision for the project and make an attempt to persuade the Russian company not to take legal action.

Moscow has repeatedly warned that Bulgaria will be sued and obliged to pay EUR 1 B in damages if the project collapses.

Experts however have commented that the prospect of paying hefty compensation to the Russian contractor is not that scary.

According to them Russia, for whom this project is very important from a political rather than an economic point of view, is very likely to agree to more delays.

Besides the very constitution of the arbitral tribunal takes a few months. In some cases this process can be quite long, especially when the arbitration procedure has not been explicitly stipulated in the contracts.

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