Russia renewed its pressure on Bulgaria and Greece to sell their stakes in the proposed Burgas-Alexandroupolis pipeline at the latest round of talks in Athens, Bulgarian media reported.
Representatives of the three sides met in the Greek capital to discuss the statute of the company that will build and operate the pipeline, but talks took a turn for the worse when Russia demanded financial penalties if any of the shareholders fails to guarantee a flow proportional to its stake in the pipeline company.
The demand is a sign that Russia, the only one of the three parties that has big oil reserves, is trying to pressure its partners into selling out sooner rather than later, when the stakes will be worth a lot more, oil industry experts said.
The deal between the three countries stipulates that Russian state-owned pipeline operator Transneft will operate all deliveries through the pipeline, which was interpreted in Bulgaria as a Russian commitment to provide the oil necessary for the pipeline's operation.
Bulgaria has no intention to sell its stake in the project, the country's regional development ministry said on Tuesday.
It is expected, however, that Bulgaria will step up its efforts to find a supplier for its quarter of the pipeline's capacity, initially projected at an annual 35 million tonnes, with an option to expand it to an annual 50 million tonnes.
Bypassing the congested Bosporus straits, the pipeline could transport the Caspian oil coming in from Russia's oil terminal at Novorossiysk.
Russia will have a controlling 51% stake in the company, set up through a treaty signed with Bulgaria and Greece in May, while the other two countries would split the rest evenly.
The three countries are also yet to decide which corporate tax haven the company will be registered in, with Bulgaria strongly opposing Cyprus, while Holland and Luxembourg are the other options.