"Given the position of the European Commission, which is not conducive to the realization of this project, given the fact that we just received, quite recently, permission from the relevant authorities in the Netherlands ... it was positively decided. Given the fact that we still do not have permission from Bulgaria, we believe that Russia under these conditions cannot continue this project," Putin said.
"We cannot begin the construction in the sea as long as we do not have the permission to start construction from Bulgaria and coming to the Bulgarian shore and stopping would just be ridiculous," he added.
According to Putin, Bulgaria's losses from the suspension of the South Stream will amount to 400 million euros per year.
"If Bulgaria is prevented from acting as a sovereign state, then at least let them demand money from the European Commission for not receiving profit, because only direct budget revenues to Bulgaria's budget from the transit would be at least 400 million euros a year," he said .
The Russian leader added that "ultimately, it is Bulgaria's choice."
Putin also said that because of the position of the EC on the South Stream, Moscow will re-target the direction of its energy supply.
"We believe that the position of the European Commission was not constructive. In fact, the European Commission did not help in this project, but we see that the obstacles are created. Well, if Europe does not want to implement it, well, then, then it will not be implemented," he said.
Russian President said: "We will refocus our energy flows to other regions of the world, including through the promotion and accelerated implementation of liquefied natural gas projects."
"We will promote to other markets, and Europe will not receive these volumes, at least not from Russia. We believe that this is not in the economic interests of Europe and is detrimental to our cooperation. But this is the choice of our European friends," Putin said.