Monday, July 13, 2009

Bulgaria suspends major energy projects with Russia - paper

Bulgaria suspends major energy projects with Russia - paper

Bulgaria has put two major energy projects with Russia on hold until the country's new prime minister-designate Boiko Borisov has carried out a review of outstanding projects, a business daily said on Monday.

The center-right GERB party won a landslide victory at parliamentary elections on July 5 and its leader Borisov is expected to head a new government soon, Vedomosti reported.

In a letter sent to Economy and Energy Minister Petar Dimitrov, the future leader said his party was receiving alarming signals over operations conducted by state-owned companies, which were not taking into account the financial and economic crisis and Bulgaria's national interests, Vedomosti reported.

The letter called on the minister to put on hold finalizing of new lease and loan agreements, and also temporarily freeze such projects as the construction of the Belene nuclear power plant and the South Stream gas pipeline project, the paper reported.

It will be interesting to see how Russia handles this move. The Nabucco pipeline will cut into the power grab that Gazprom has had on Europe.

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