EU asks Bulgaria to stop work on Gazprom's South Stream pipeline


The EU is demanding that Bulgaria suspend construction work on Russia's South Stream natural gas pipeline project while it investigates the way contracts were awarded.

The EU says South Stream - a 50/50 joint venture between the Bulgarian government and Gazprom (OGZPY) - breaks EU rules that prohibit gas suppliers from also controlling pipeline access, and it has put on hold the approval process for the project.

South Stream would carry ~12% of Europe's current annual gas consumption via the Black Sea, bringing Russian gas to Europe largely circumventing Ukraine; it is due to be completed by 2018.

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Comments (5)
  • Philip Marlowe
    , contributor
    Comments (1538) | Send Message
     
    Big mistake. It is very much in Europe's interest to have a diversity of supply routes for gas into the EU. This is just basic economics.

     

    If the pipeline ownership is against EU rules, they can just ask Gasprom to divest its share before they allow shipments from the pipeline. But don't stop the building.
    3 Jun 2014, 03:03 PM Reply Like
  • Sakelaris
    , contributor
    Comments (2493) | Send Message
     
    Hasn't this South Stream plan been in the works for years? Hasn't this been a cost in one way or another to the government of Bulgaria? Why would the EU wait until now to announce the discovery of this technicality? And as an above commenter pointed out, if the ownership arrangement is wrong, it can be easily fixed.

     

    Obviously this sudden change is aimed at Russia, regardless of what inconvenience or harm might befall smaller nations of southern Europe. Do not expect Bulgaria to automatically step into line, by the way.
    3 Jun 2014, 03:37 PM Reply Like
  • Humble Value Miner
    , contributor
    Comments (473) | Send Message
     
    EU is a bunch of stupid bureaucrats. First they mess up Lybia. Now Russia. We are going to burn coal (actually we already do).
    3 Jun 2014, 06:19 PM Reply Like
  • mapodga
    , contributor
    Comments (6993) | Send Message
     
    Mistake.
    Pipeline would bring jobs to build in another 4 years. till then issue with Russia should be over, or so bad that we won't need pipeline anyway.
    3 Jun 2014, 05:40 PM Reply Like
  • Puma69
    , contributor
    Comments (160) | Send Message
     
    The headline should say - USA Asks EU to ask Bulgaria to stop work on Gazprom's South Stream pipeline
    8 Jun 2014, 05:37 AM Reply Like
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