Russia adhering to Burgas-Alexandroupolis commitments; awaits Bulgaria's decision
ST. PETERSBURG. June 16 (Interfax) - Russia is adhering to its commitments under the Burgas-Alexandroupolis oil pipeline project and awaits Bulgaria's decision on the project, Russian Deputy Energy Minister Anatoly Yanovsky told reporters during an Energy Ministry conference at the St. Petersburg Economic Forum
"We are a country that has signed an intergovernmental agreement. We are strictly adhering to what we signed," Yanovsky said when asked it Russia might halt the project.
Bulgaria, which is currently studying the environmental aspects of the project, must decide, he said. "As far as I understand, the Bulgarian public is looking very closely at the project's environmental impact," he said, noting that additional environmental review is being carried out.
Politics is also a factor, he said. "It must be borne in mind that, if I'm not mistaken, Bulgaria will hold presidential, municipal elections this fall. I think that this political factor is also affecting the decision-making process," he said.
Energy Minister Sergei Shmatko said in April that Russia had raised the question of the need for a decision on the fate of the project. "We need to get to the home stretch and make a final decision on the project soon," Shmatko said.
Bulgaria currently owes about 7 million euro in overdue payments to the project.
The planned pipeline will link Bulgaria's Black Sea coast with Greece's Aegean coast, providing a route that bypasses the crowded Bosporus and Dardanelles. The 300-kilometer pipeline will have capacity for 35 million tonnes of oil a year, with a possible upgrade to 50 million tonnes a year. Construction will cost an estimated 1 billion euro. The founders of the operating company, TBP, are: TK-BA (Russia) with 51%, Project Company Burgas-Alexandroupolis BG (Bulgaria) with 24.5%, Helle C.A. - Traki C.A. (Greece) with 23.5%, and the Greek government with 1%. The founders of TK-BA, created on January 18, 2007, were: Russian oil pipeline company Transneft with 33.34%, Gazprom Neft with 33.33%, and Rosneft , also with 33.33%.
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