Bulgaria will face economic sanctions if the cabinet pulls out of the Burgas-Alexandroupolis project, according to Plamen Rusev, Director of the Bulgarian branch of "Trans-Balkan Pipeline” which is to build the oil line.

In a Saturday interview for the Bulgarian National Radio, BNR, Rusev said the sanctions are to be decided by participating countries, beginning on the shareholders’ level, because those who have invested in the project will want compensations for halting it over political reasons. The next step is the International Arbitrary Court in Paris, where matters will be resolved on State level, Rusev said.

July 15 is the tentative date when the management of the Russian Transneft will meet with representatives of the Bulgarina government in Moscow to discuss the future of the project.

The agreement to build the oil line was signed by Russia, Greece and Bulgaria in March, 2007. The project includes plans to transport oil to terminals in the Mediterranean bypassing the congested Bosphorus Strait in Turkey.

The line will be 285 km-long with a capacity of 35 to 50 million tons of crude oil per year. The total investment cost is estimated at EUR 1.5 B.

Meanwhile Russian energy expert, Mihail Krutihin told BNR that the destiny of the gas line South Stream also remains unclear because it needs USD 25 B in financing and there isn’t really an investor.

“Bulgaria might be much better off to join Nabucco which will be financed by the EU and has better chances to be build than South Stream,’ Krutihin said.