site.btaAgriculture Ministry: South Stream Bulgaria Bought 35.8 Hectares of Land for Lv 20 Mln-Plus

Sofia, July 31 (BTA) - The Agriculture Ministry said that the Ministry and South Stream Bulgaria AD, a 50%-50% joint venture between the Bulgarian government and Russia's Gazprom, signed a land sale agreement on July 21. This was done in compliance with the Forestry Act after alteration of the assigned use of forestry land at the company's request.

The agreement was signed in compliance with a July 15 decision of the Executive Forest Agency, which excluded 17 properties in Varna Municipality with a total area of 35.855 hectares from the state forestry stock.

The company paid slightly over 20,599,400 leva for the alteration of the assigned use and the acquisition of the property.

The Agriculture Ministry said it made the decision in compliance with all the legal requirements and procedures. It took into consideration a Council of Ministers' decision of December 2, 2011, which designated the stretch of the South Stream pipeline in Bulgarian territory a project of national importance and a national project. The Agriculture Ministry also complied with the fact that being a national facility, the pipeline is not subject to the moratorium Parliament imposed last July on all transactions for disposition and construction on state-owned immovables in Zones A and B under the Black Sea Coast Development Act.

The moratorium does not apply to infrastructure projects of local and national importance.

On June 8, Prime Minister Plamen Oresharski pledged to temporarily suspend work under the project, stating that "the South Stream gas pipeline project will continue only after all remarks by Brussels have been lifted".