According to Bulgaria’s energy expert Ilian Vassilev who also served as an ambassador of Bulgaria to the Russian Federation, the suspension of the gas project was due to its inconformity with the EU legislation:

“The bank consortium which had to finance 75% of the total cost of the project refused to pay until the issue regarding the discrepancy of the South Stream with the European legislation is solved completely. Apparently, the management of Russia’s energy company Gazprom realized that the fulfillment of the project was hampered by a series of obstacles.”

Russia would never admit officially the real reasons behind the suspension of the project, because the reputation of its energy giant Gazprom would be affected. On the other hand, it can not keep silence, because the experts and the media would learn that the project is not running, if the contractors and the subcontractors fail to meet the deadline. That is why, Russia chose a different strategy, Ilian Vassilev said and added:

“Russia also has the option to build the South Stream project through Turkey, or another country, so it would make the European countries feel they actually lost something. Thus, the former partners under the South Stream project would start calculating their financial losses and later start to exert pressure on the European Commission. However, the gas pipeline project can not be fulfilled under the current circumstances and the media and the society can not debate over the alternative route of the pipeline through Turkey, because this option is still an idea and there is not any official agreement between Russia and Turkey. These two countries merely showed intentions about future negotiations.”

Although Gazprom refused to allow other suppliers to have access to the South Stream gas pipes, the idea about this project did not receive a warm welcome by Turkish Minister of Energy and Natural Resources Tener Yildiz who said that no official agreement was signed with Russia. Here is how energy expert Ilian Vassilev commented Russia’s surprising move.

“The intention of Russia’s head of state to engage Turkey as a strategic partner in a moment of confrontation with the West due to the South Stream issue is a very risky undertaking. Turkey has the ambition to show its own influence which stems from its ability to be a mediator in the energy security field and contribute to the transition of gas from other countries to Europe.”

The message sent in Ankara by President Vladimir Putin and Aleksey Miller would probably affect negatively Gazprom’s market positions. This energy company has been so far Europe’s priority partner and a supplier of gas to a large segment of the European market. If the company intends to build a gas hub in Turkey, it would send a negative signal of uncertainty to Europe and would intensify the efforts of the EC to find an alternative of Gazprom.

The suspension of the project gives many opportunities to Bulgaria which could not only compensate the possible losses from gas transit, but could also carry out a more balanced energy policy, which includes the prospecting and the extraction of gas and oil on its own territory.

“Bulgaria should carry out a balanced energy policy, boost its gas links with new gas interconnections and expand its gas storage facilities. It should also launch a gas market and link it with all leading European stock exchanges. All policies linked with the topic of a European Energy Union give us a long-term perspective and better opportunities, because this country would save EUR 2,5 billion per year for energy resources”, Mr Vassilev further commented.

English version: Kostadin Atanasov