The last few days saw explanations, clarifications and arguments, exchanged between Sofia and Brussels on the construction of the South Stream gas pipeline. The tension escalated after the EP adopted a resolution against the pipeline’s launching. Then a meeting followed of Economy Minister Dragomir Stoynev with EU Energy Commissioner Günther Oettinger and both politicians presented different interpretations afterwards. The EC blamed this country for not complying with the EU legislation and sanctions would follow, they said. Sofia stated that South Stream won’t be ceased. Thus Bulgaria was threatened for the first time openly by Brussels and the Bulgarian government entered into a real conflict with the EC.

The reasons

The Bulgarian parliament has adopted at first reading amendments to the Energy Act, reading that the sea part of South Stream, penetrating the Bulgarian territory with 24 km, will be considered an interconnector and not a gas pipeline. The goal is the legislative status of this segment to be changed, thus taking it out of the EU legislation’s range. The EC has reacted sharply, as only Gazprom will have access to the terminal in this manner, in the first segment on Bulgarian /which is EU!/ territory. Thus the Third Energy Package of the EU will be violated.

South Stream has never been a priority to the EU

This is the EC stance that wants to develop the Southern Gas Corridor for a link to the blue fuel from the Caspian region. The EU legislation also seizes Bulgarian territorial waters, the team of Mr. Oettinger stated, concerned about the legislative changes here in favor of South Stream. Brussels has wigged Bulgaria once again, warning on sanctions in case of non-compliance with the European legislation. Furthermore, Sofia submits to Gazprom tax eases for the construction of the pipeline, which also violates the laws of the union.

South Stream won’t be ceased

That is the Bulgarian stance, as voiced by Economy Minister Dragomir Stoynev right after his meeting with Mr. Oettinger. Stoynev says that Bulgaria violates no EU laws. “South Stream is important not only to Bulgaria, but also to Europe,” the minister explained, giving Italy and Austria as an example, as those also struggle for the route of the project. Obviously the minister won’t reach an agreement with Brussels, because on one hand he promised that Bulgaria would comply with the resolution against the construction of South Stream, while on the other “it will kick off the building on its territory as early as this year… since this country is a strategic partner to Russia.

Gazprom’s response

The construction of South Stream in Bulgaria and Serbia will kick off this summer, as the launching of the pipes will start in May. “Only South Stream can give to Europe additional guarantees on its energy security,” CEO of Gazprom Alexey Miler commented. The launching of the pipes in the sea part will start in the autumn, while the initial gas supplies are to be transferred end-2015.

Confrontation with Brussels

So, why has the government collided directly with Brussels, as the EC has never mentioned the ceasing of South Stream? On the contrary, the idea was Gazprom to request an exception to the rules – the way it happened with North Stream. However, the Ukrainian crisis has changed it all. Moscow got nervous and pressed Sofia with allegations on possible removal of the project on the territory of Romania or Turkey. Bulgaria doesn’t want to lose fresh money for its economics and the EC tries to punish Moscow on Kiev – hence the clash.

English version: Zhivko Stanchev