Bulgaria, being an EU country on the route of the South Stream gas pipeline, remains firmly committed to observing the requirements of EU law.

Bulgaria's Ministry of Economy and Energy issued a media statement Thursday, following recommendations of the European Commission that EU Member States participating in the South Stream gas pipeline project renegotiate their intergovernmental agreements with Russia "from scratch."

The EC warned that the EU countries faced infringement proceedings unless they took steps to make the bilateral agreements compatible with EU law.

Klaus-Dieter Borchardt, director for energy markets at the European Commission, drew attention to three aspects of the bilateral deals, including the fact that Gazprom, which was both a producer and a supplier of gas, could not simultaneously own production capacity and its transmission network, that the participants had to ensure non-discriminatory third-party access to the pipeline and the tariff structure had to be addressed.

Threatening penalties by the EC, Borchardt, as cited by Euractiv, noted that the conduit could not function under these agreements.

"Bulgaria believes that the construction of the South Stream gas pipeline on the territory of the EU Member States – Italy, Slovenia, Austria, Hungary, Croatia, and Bulgaria – presupposes  an important and active role of the European Commission in the talks with Russia," according to Bulgaria's Ministry of Economy and Energy.

"The EC should provide assistance to the different EU Member States in their talks with Russia," the Ministry declared.

"In this connection, Bulgaria would welcome a more active dialogue between the EC and Russia on this important energy project with great economic and social impact," the Ministry said.