The Bulgarian Finance Minister, Mr Simeon Djankov, has reportedly stated that the Bulgarian government has decided to give up on the Russia-led Trans-Balkan oil pipeline project.
He said that “Bulgaria has withdrawn from the project, because it cannot be implemented on its terms and using the financial indicators stipulated in the 2007 agreement.”
Mr Djankov added that the Bulgaria’s decision would not entail any sanctions against the country and the project’s supervisory board would hold a meeting shortly where Bulgaria would outline its position.
Designed to link the Black Sea port of Burgas to Alexandroupolis on the Aegean Sea, the 300 km pipeline will transport 35 million tpa of oil, with a possible expansion to 50 million t to ease the tanker traffic burden in the Bosporus and the Dardanelles straits.
However, its construction has long been hampered by Bulgaria’s concerns, primarily relating to environmental risks. Around half of the pipeline was planned to run through Bulgarian territory.
Russian oil pipeline monopoly Transneft has repeatedly complained that Bulgaria was failing to finance its part of the project. Reports suggest that the project will be suspended, while Transneft only said it would minimise its spending on the pipeline.
Russia owns 51% in the project with Bulgaria and Greece equally sharing the remaining 49%.