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 Bulgaria breaks an agreement with Russia for the construction of an oil pipeline

The Bulgarian Government has decided to propose to Parliament to get out of an agreement with Russia and Greece, signed in 2007, for the construction of an oil pipeline bypassing the Turkish straits of Bosporus and Dardanelles, reports Bloomberg.

According to the Government statement, the pipeline cannot be built under the conditions set in 2007, and Bulgaria is taking steps to end its participation in the project by asking legislators to terminate the agreement.

As reported, in March 2007, Russia, Bulgaria and Greece signed an intergovernmental agreement on the construction of the Burgas-Alexandroupolis pipeline. The signing ceremony was attended by President Vladimir Putin, Prime Minister Kostas Karamanlis and Prime Minister of Bulgaria Sergei Stanishev.

It was assumed that the capacity of the 285 kilometer pipeline will be 35 million tons per year with an option to increase to 50 million tons a year. The cost of construction was estimated then to be around 1 billion euros.

The founders of the Trans-Balkan Pipeline BV are: TC-BA (Russia) - 51%, "Project Company" Burgas-Alexandroupolis BG "(Bulgaria) - 24.5%," Help SA - Truckee SA "(Greece) - 23.5%, the Greek government - 1%.

The founders of the TC-BA are "Transneft" (RTS: TRNF), "Gazprom Neft" (RTS: SIBN) (33,33%) and NK "Rosneft" (RTS: ROSN) (33,33%).

Bulgaria after the long delays of project implementation has paid all the debts and announced its intention to withdraw from it. After negotiations, in March 2012, a plan to minimize costs in order to maintain TBP was adopted with a purpose of maintaining it a legal entity right owner and avoiding significant new spendings. Implementation of this project, as reported by "Transneft", has been postponed indefinitely.

Meanwhile, on January 22 the Transneft delegation at the invitation of the European Union discussed the issue of the Burgas-Alexandroupolis oil pipeline in Brussels.

 
 
 
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