The fate of the Burgas-Alexandroupolis oil pipeline was discussed in Moscow on 8-9 September by Russian and Bulgarian officials in yet another attempt to jumpstart the construction of the long-delayed project - one of two planned to take most oil tankers out of the congested Bosphorus.
But Bulgaria’s Deputy Prime Minister and Minister of Finance Simeon Djankov, who over the past several months has become the person responsible for the Bulgarian participation in Burgas-Alexandroupolis, did not attend the negotiations, the Finance Ministry confirmed to New Europe on 10 September.
Representatives of the Bulgarian and Russian shareholders in Burgas-Alexandroupolis discussed a proposal for funding the project made by the Russian company Transneft, Rumen Porodzhanov, one of the Bulgarian members of the Supervisory Board of Trans-Balkan Pipeline, was quoted as saying in a statement by the Bulgarian Finance Ministry.
A Bulgarian diplomat in Sofia told New Europe on 9 September that Sofia’s objections to the project related particularly to the environment and the social impact assessment, not just the financial aspect. He said that Sofia has “certain reservations, but again we have never said there is a final decision to let it go.”
After it took office in July 2009, the government of Prime Minister Boyko Borisov, under US pressure, made it clear it was going to reconsider the Bulgaria's participation in the three Russian-backed projects – South Stream gas pipeline, Belene nuclear power plant, and Burgas-Alexandroupolis.
Bulgaria’s stated objection to Burgas-Alexandroupolis is because of environmental concerns. “In reality, its objection has more to do with the government’s wish not to increase economic ties with Russia as it looks to build stronger ties with the EU,”Chris Weafer, chief strategist at Moscow’s Uralsib bank, wrote in an e-mail on 6 September. He accessed that Moscow has a better chance of pushing forward with the by-pass pipeline now than at any time in the past. “The economic crisis across the EU and the solvency problems in Eastern Europe in particular, has reduced the possibility of the latter while making the former economic pragmatism,” Weafer wrote. “In mid 2009, the Bulgarian delegation wouldn’t have even considered coming to Moscow.”
Earlier, Greek officials told New Europe that Athens really doubts that environmental safety is the real motive of Bulgaria for stalling the project. But the Bulgarian energy diplomat on 8 September said he did not expect that one EU country will challenge another EU country’s decisions. “On the contrary such environmental and social impact assessment is envisioned as collaborative effort,” he told New Europe.
Meanwhile, Russia has also agreed to supply oil to a second Bosphorus by-pass pipeline, which has been described as the major competitor of Burgas-Alexandroupolis. Samsun-Ceyhan is a project to transport Russian and Caspian oil from Unye in Turkey’s Black Sea region, to the Mediterranean. But Weafer said Russia wants both pipelines. While Samsun-Ceyhan – at full capacity - would take the bulk of the current oil volume out of the Bosphorus, it would not allow for any additional oil volume. The shareholders of CPC recently announced that the current 700,000-barrel per day capacity is to be doubled to 1.4 million barrels by 2014. “For that to happen, both the Burgas-Alexandroupolis and the Unye-Ceyhan pipes will have to be operational,” Weafer wrote. “Otherwise the Bosphorus will be even more congested.”