Russia and Bulgaria sign South Stream roadmap

Russia's energy minister, Sergei Shmatko, and Bulgaria's economics, energy and tourism minister, Traycho Traykov, signed the agreement in Varna on Saturday.

The deal allows for the South Stream gas pipeline to cross Bulgarian territory with the ultimate goal of diversifying Europe’s energy routes and bypassing Ukraine, with whom Russia have had energy disputes in the past, which led to disrupted gas supplies for central and western Europe.

"The South Stream gas pipeline construction project means a lot for the diversification of the Russian gas supplies to the European consumers and energy security, strengthening the position of Bulgaria as a key center of gas transit in Europe," the Russian Energy ministry said in a statement.

The South Stream pipeline, which is being developed by Gazprom's Russia with Italy's Eni, will carry up to 63 billion m³/yr of Russian gas across the Black Sea to Bulgaria, where it will split into two lines to be built by Gazprom jointly with local partners. One line will run southwest to Greece and into southern Italy. The other line will run northwest to northern Italy, with an offshoot to Austria, via Bulgaria, Serbia, Hungary and Slovenia.

However, the gas pipeline is not without it’s opponents. The leader of Bulgaria’s biggest right-wing party, Martin Dimitrov, has criticised the cost of Bulgaria’s section of the pipeline. He believes that the US$ 860 million price tag is too high and it is unclear how long it will take Bulgaria to yield a profit from it’s investment.

“South Stream does not help Bulgaria diversify its energy supplies. This project is good only for Russia, since it offers an alternative route, which bypasses Ukraine,” he pointed out.

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