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Bulgaria Decides to Drop Trans-Balkan Oil Pipeline Project

  • RIA Novosti cited Mr Simeon Djankov Bulgarian Finance Minister as saying that the Bulgarian government has decided to give up the Russia-led Trans-Balkan oil pipeline project.He said that “Bulgaria has withdrawn from the project, because it cannot be implemented on its terms and using the financial indicators stipulated in the 2007 agreement.”Mr Djankov said Bulgaria’s decision would not entail any sanctions against the country and the project’s supervisory board would hold a meeting next Wednesday where Bulgaria would outline its position.
  • The construction of the Trans-Balkan oil pipeline, designed to link the Black Sea port of Burgas to Alexandroupolis on the Aegean Sea has long been hampered by the position of Bulgaria which has threatened to abandon the project over 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. Media has said the project was likely to be suspended while Transneft only said it would minimize its spending on the pipeline. The 300-kilometer pipeline is designed to transport 35 million tons of oil a year, with a possible expansion to 50 million tons to ease the tanker traffic burden in the Bosporus and the Dardanelles straits. Russia owns 51% in the project Bulgaria and Greece equally share 49%.

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