Russian Prime Minister Vladimir Putin and his Bulgarian counterpart Sergey Stanishev said Tuesday they were close to signing a deal on the South Stream gas pipeline to Europe after resolving differences.
"There is no disagreement between Russia and Bulgaria," Putin was quoted by RIA Novosti and Interfax as saying at the close of a meeting with Stanishev.
Putin added that an agreement on the pipeline would be signed as soon as two weeks from Tuesday.
Stanishev was also upbeat, playing down strains in Bulgarian-Russian relations over the pipeline issue.
"By the middle of next month a decision will be taken. I voice my satisfaction that the issue has been resolved," Stanishev said.
South Stream is one of two major gas pipeline projects that Russia is developing, aimed at consolidating its commanding position in supplies of gas to Europe.
Analysts have pointed to a variety of difficulties with the two prestige projects, including a raft of objections from Russia's neighbors.
Meeting Stanishev later, Russian President Dmitry Medvedev said: "You had very satisfactory talks with Prime Minister Putin. I hope we will be able to sign the agreements very soon ... And we hope that South Stream will not only exist on paper."
Tuesday's meetings came after Bulgarian President Georgy Parvanov said Saturday there was a "clash of interests" between Bulgaria and Russia on the terms of the South Stream deal and insisted the small Balkan state would defend its interests.
Bulgaria had hoped Putin would attend a regional energy conference last weekend and took the Russian premier's decision to stay away as a slight, resulting from Sofia's refusal to commit to the South Stream project.
Bulgaria and Russia agreed in principle last January to have a 50-50 share in the new pipeline, which will span Bulgarian territory from east to west before branching off toward Austria on one side, and Greece and Italy on the other.
But a recent Russian plan to cut South Stream costs by using Bulgaria's existing pipeline network, which already channels Russian gas to neighboring Greece, Macedonia and Turkey, has angered Bulgaria.
And in a move to reduce its almost total dependence on Russian supplies, Bulgaria has also voiced support for the competing E.U.-backed Nabucco pipeline to feed Europe gas from the Caspian region, while bypassing Russia. Sponsors