VEDOMOSTI: Bulgaria halts construction of Belene nuclear power plant and of South Stream gas pipeline

Alina Vasiescu

Bulgaria has put two major energy projects with Russia on hold until the country"s new prime minister-designate Boiko Borisov has carried out a review of outstanding projects, Russian economic daily Vedomosti says. According to Vedomosti, the party led by Borisov received alarming warnings over the operations conducted by Bulgarian state-owned companies, which neglected to take into account the financial and economic crisis and Bulgaria"s national interests.

Boiko Borisov asked the Minister to put on hold the completion of any new lease and loan agreements, and also temporarily halt the construction of the Belene nuclear power plant and the South Stream gas pipeline project.

Russia and Bulgaria signed an inter-governmental agreement concerning the construction of the South Stream gas project with the Bulgarian government in January 2008 and in May 2009 Gazprom and state-run Bulgarian Energy Holding (BEH) agreed to set up a joint venture on a parity basis to build the Bulgarian section of the South Stream pipeline by mid-2010.

The South Stream project was intended to pump 31 billion cubic meters of Central Asian and Russian gas a year to the Balkans and to other European countries. The project involves Bulgaria, Serbia, Hungary, Italy and Greece. The pipeline"s capacity could be eventually increased to 63 billion cubic meters annually.

As to what concerns the second project, "Atomstroiexport", Russian state-owned nuclear energy equipment maker, which also owns export services, won a tender to build and deliver equipment for a nuclear power plant in Belene, Bulgaria, in 2005, according to Vedomosti.