The Bulgarian prime minister Friday announced the country is to withdraw from the proposed Burgas-Alexandroupolis oil pipeline project and freeze construction of its second nuclear power plant at Belene, but the country's energy minister issued an immediate denial, Sofia News Agency reports on its website.

"The pipeline passes through protected areas from the European environmental protected area network Natura 2000, to top it all off there are no guarantees for us to see returns in the short term," Prime Minister Boyko Borisov said. "We saw what happened at the Gulf of Mexico ."

On the nuclear plant, Borisov said: "There is no clear indication when Bulgaria will get back the money it will invest."

However, Energy Minister Traicho Traikov denied any official decisions had been made on either of the projects.

"I can't believe he said that," Traikov is quoted as saying.

The move comes in the same week that the Russian government threatened to suspend the pipeline's construction and cease funding due to what it called the Bulgarian government's indecision.

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