site.btaPresident Plevneliev: South Stream Is Entirely a Matter between Russia and EU

President Plevneliev:
South Stream Is Entirely
a Matter between Russia and EU


Sofia, December 2 (BTA) - Reacting to reports that the South
Stream natural gas pipeline project has been scrapped, Bulgarian
President Rosen Plevneliev said on Tuesday that this is
entirely a matter between Russia and the EU, not between Russia
and Bulgaria.

Plevneliev said: "We are all clear that South Stream is not a
project between Russia and Bulgaria. It is a project between
Russia and the European Union. Similarly, the decision about
South Stream can only be made in a Russia-EU format."

The President recalled that the nations which have an interest
in the project have carried out much preparatory work and have
authorized the European Commission to conduct negotiations with
the Russian leaders in order to make a decision about the
project. "The decision about South Stream lies entirely in the
hands of Russia and the EU," he insisted.

He believes that if Russia complies with EU laws and shows a
willingness to observe them as they are, no one will be opposed
to the project. "But Russia has not indicated that it wants to
go by those laws," Plevneliev added.

On Monday, Russia's ITAR-TASS news agency quoted Gazprom chief
Alexey Miller as saying that the South Stream gas pipeline
project has been "closed." Miller, who was accompanying Russian
President Vladimir Putin on a visit to Turkey, told journalists
that the project "has no relevance."

Shortly before that, Putin said at the end of Russia-Turkey
high-level talks that "in the current conditions, Russia cannot
begin the implementation of the South Stream project," ITAR-TASS
reported. The reason, Putin said, is that Russia has not yet
received Bulgaria's permission. He recommended to Bulgaria to
demand compensation from the EU for lost profit in connection
with South Stream.

Miller reportedly said that Russia and Turkey have signed a
memorandum to build a seabed pipeline to carry 63 billion cubic
metres of Russian natural gas to Turkey annually.

Russian Energy Minister Alexander Novak was quoted by ITAR-TASS
as saying that President Putin has decided to cancel the South
Stream project.

Bulgarian President Plevneliev further commented that he would
not describe the situation about South Stream as confrontation.
He feels that it is all about EU standards. "The EU is a bloc
based on rules and the rule of law. We are sorry to see that
Russia has demonstrated the rule of force, not the rule of law,
during the Ukrainian crisis. When the rules are observed, any
project, big or small, can be accomplished," Plevneliev argued.

Taking a reporter's question, he said it is difficult to say
whether Bulgaria stands to lose or gain from the apparent
cancellation of the project. He noted that Bulgaria has not
signed an agreement on the proceeds from South Stream. "We do
not know what we can get from South Stream, whether we can get
one lev or we can get more," Plevneliev said, adding that any
estimates are only hypothetical. He also noted that speakers
have failed to draw the necessary distinction between proceeds
and profit.

The proceeds which Bulgaria can get from South Stream are not
guaranteed, the President said, recalling that earlier Bulgarian
governments only signed an agreement on the expenses. "I
believe this is a major setback. I do not know what Bulgaria
stands to gain from South Stream. If someone knows that, they
should provide proof and put it forward," Plevneliev said.

Also on Tuesday, Bulgarian Deputy Prime Minister Meglena Kuneva
said that Russia has not yet made public its official position
about the future of the South Stream project, so Bulgaria cannot
comment. Kuneva said Bulgaria wants a project which is
economically beneficial and conforming to EU law.

Bulgarian Economy Minister Bozhidar Loukarski said: "To me, the
South Stream project is not closed until we hear of Russia's
position." PK/VE


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