Bulgaria’s losses from suspension of South Stream gas pipeline estimated at USD 750 million

YEREVAN, December 3, / ARKA /. Former Bulgarian energy minister Rumen Ovcharov has estimated Bulgaria’s losses from the suspension of the South Stream gas pipeline at around USD 750 million, RIA Novosti reported.

In a Tuesday interview for the morning broadcast of Nova TV, Ovcharov noted that annual gas transit of 63 billion cubic meters would be redirected from Bulgaria to Turkey as a result of the decision of Russia to drop the South Stream gas pipeline project.

He emphasized that Bulgaria would not only lose money but also suffer geostrategic and political losses.Ovcharov, Energy Minister in the socialist-led three-way coalition government (2005-2007), argued that it was a matter of time until Bulgaria was deprived of the current gas transit quantities, according to reports of dnevnik.bg.

During a visit to Turkey on Monday Russian president Vladimir Putin unexpectedly announced Russia was shelving the multi-billion dollar South Stream pipeline project to deliver Russian gas to the Europe, blaming the EU for throwing obstacles in its path. He said construction of the pipeline was not possible as the European Commission had forced Bulgaria to stop work under its territorial waters.

South Stream would deliver 63 billion cubic meters of natural gas a year, equivalent to more than 10 percent of European demand, from Russia via the Black Sea into the EU toward the end of this decade, cementing Russia's role as the region's dominant supplier.-0-