Bulgaria Caves to Russia's Pressure on South Stream Gas Pipeline

Strategic Insights -

Bulgaria's government, led by Prime Minister Boyko Borissov, has unexpectedly reversed its stance on the South Stream gas pipeline project, agreeing to fast-track the Kremlin-favoured project despite initial reluctance. The decision followed a visit by Russian Deputy Prime Minister Viktor Zubkov to Sofia on July 6, where he secured the Bulgarian government's consent for a "roadmap" to speed up the project. This breakthrough came as a surprise to the US, which had asked Bulgaria to delay its participation in the project to allow the rival Nabucco pipeline to come to life first.

Key Takeaways:

  • Bulgaria's government has agreed to fast-track the South Stream gas pipeline project, despite initial reluctance, after a visit by Russian Deputy Prime Minister Viktor Zubkov to Sofia on July 6.
  • The Bulgarian government will use the existing gas pipeline system for the project, with the pipes remaining Bulgaria's property, and ownership will be on a parity basis between Russia and Bulgaria on the added sections.
  • The project will be implemented in the shortest terms, according to Zubkov, although he did not provide details on the pipeline's ownership formula.
  • The US had asked Bulgaria to delay its participation in the South Stream project to allow the rival Nabucco pipeline to come to life first, and is now unhappy with Bulgaria's decision to proceed with the project.
  • Bulgaria's defence minister, Anyu Angelov, stated that the country is not adequate for hosting elements of the US anti-missile shield, which could be seen as a sign of rapprochement with Russia.
  • The Bulgarian government is also working on an agreement with Russia to postpone a 280 million euros down-payment for building the first unit of the Belene nuclear power plant.

Statistics:

  • 2015: The year in which the South Stream gas pipeline project is expected to be operational after the agreement between Bulgaria and Russia.
  • 6 July: The day on which Russian Deputy Prime Minister Viktor Zubkov visited Sofia and secured the Bulgarian government's consent for a "roadmap" to speed up the project.
  • 280 million euros: The amount that Bulgaria had been expected to pay to Atomstroyexport to build the first unit of the Belene nuclear power plant.
  • 1877-78: The period during which Russia helped free Bulgaria from the Ottoman Empire in the Russo-Turkish war.
  • 2010: The year in which plans to eliminate Bulgaria from the South Stream project were first reported by the Russian press.

Sources:

  • Kommersant: "Bulgaria: Brotherly to Gazprom", 7 July 2010
  • Trud: Comments from US Ambassador to Sofia James B. Warlick, 7 July 2010
  • Bulgarian government statement, 8 July 2010
  • Russian Deputy Prime Minister Viktor Zubkov's statement, 8 July 2010
  • Bulgarian defence minister Anyu Angelov's statement, 5 July 2010