site.btaEuropean Commission Welcomes Sofia's Decision to Freeze South Stream Gas Pipeline Project

Brussels/Sofia, August 20 (BTA) - The European Commission (EC) welcomes the BulgariaÒs decision to freeze the South Stream project until it is brought in line with the requirements of the EU legislation, Marlene Holzner, a spokesperson of Energy Commissioner Guenther Oettinger, said on Tuesday.

The EC welcomed the news announced by Sofia that Bulgaria was suspending all activities in the South Stream project awaiting consultations with the EU. The EU is ready to take part in a discussion with the Bulgarian authorities so at to ensure the project's full compliance with the EU rules, Holzner said.

On a recommendation of the EC, the project company - South Stream Bulgaria, suspends contracting and signing of agreements vis-a-vis the construction of the gas pipeline on Bulgaria's territory, the company said in a press release on August 19. The press release said further that the company was carrying out preparatory activities for the project, in compliance with the national and the European legislation. South Stream Bulgaria is owned 50 per cent by the Bulgarian Energy Holding (BEH) and 50 per cent by Russia's Gazprom.

In a press release also on August 19, BEH said that the Holding was rendering full assistance to the EC in clarifying issues vis-a-vis the South Stream project, with the caveat that BEH may not disclose trade secrets.

BEH said also that the Holding has notified Gazprom and the Executive Directors of South Stream Bulgaria on the suspension of the activities on the project until the final clarification of all matters pertaining to the procedure for the award of the contract for design works, supplies and construction, and in compliance with the EC's requirements.

Bulgarian Deputy Prime Minister in charge of economy Ekaterina Zaharieva and Economy and Energy Minister Vassil Shtonov left for Brussels on Tuesday where they were scheduled to confer with European Commission Vice President and Energy Commissioner Guenther Oettinger and officials of the Directorate-General for Energy.