From Bulgaria Bookmark and Share

22.07.2014 17:48
Bulgarian Government Approves South Stream Loan from Gazprom in Its Last Days
Meanwhile the rumoured tacit replacing of U.S.-sanctioned Stroytransgaz in the construction of the Bulgarian stretch of South Stream with the Gazprom subsidiary Centrgaz was confirmed by Bulgaria’s energy minister Dragomir Stoinev

  • ©

The state-owned Bulgarian Energy Holding (BEH) will approve the EUR 620 m loan it was offered by Russia’s Gazprom for the construction of South Stream in Bulgaria during a meeting currently held after 17.00 h EET, Capital Daily reported. The news comes as the government of Plamen Oresharski is expected to resign on Tuesday, the resignation being set for parliament voting on Thursday.

The EUR 620 m is meant to help BEH finance its participation in the project. The amount however would not be enough for BEH to cover its 15-percent share, as the contract with Stroytransgaz Consortium is estimated at EUR 3.8 m rather than the initial EUR 3.5 m, thus obliging BEH to put EUR 68 m more of own financing on the table, Capital wrote.

BEH will pay back the loan with the future dividends from the pipeline.

The newspaper also informed that the capital of South Stream Bulgaria will be increased with 10 percent so that it could make the required advanced payment of 10 percent (EUR 380 m) to the consortium.

This news is just one of a series of rumours pointing to the fact that Bulgaria has not actually stopped working on South Stream despite promises to the EU for the opposite. 

Bulgarian liberal political formation the “Reformist Block” alarmed on Monday  that the Bulgarian government is preparing to issue an EUR 100 million bank guarantee via the Bulgarian Development Bank (BDB) and the Bulgarian Export Insurance Agency (BEIA) for the construction of South Stream gas pipeline despite earlier signals that the project has been put on hold in accordance with the EU’s grievances. Ex-energy minister during the GERB government and current member of the Reformists Traicho Traikov stated that the state intends to make its participation in the South Stream project irreversible through the issuance of a state guarantee via the DBD and the BEIA despite the fact that the construction of the pipeline might not happen in the end.

“If the project is to be stopped, delayed or modified, these 100 million euros will be paid by the Bulgarian taxpayers”, Traikov said.

This statement follows earlier evidence uncovered by the Reformists which suggested planned amendments to Bulgaria’s Energy Act in favour of South Stream’s construction were directly adopted from a series of Gazprom letters to the BEH, both partnering with equal shares in the joint venture and future pipeline operator South Stream Bulgaria.

Meanwhile the rumoured tacit replacing of U.S.-sanctioned Stroytransgaz in the construction of the Bulgarian stretch of South Stream with the Gazprom subsidiary Centrgaz was confirmed by Bulgaria’s energy minister Dragomir Stoinev in an interview for bTV. Centrgaz will partner with five Bulgarian companies reported by Bulgarian media as close to the current socialists-led government.

Last week Centrgaz was announced as construction of the pipeline in Serbia.

TAGS: Bulgaria | South Stream | loan | Gazprom | gas pipeline | Bulgarian Energy Holding | Reformists Block | Dragomir Stoynev | Centrgaz | Stroytransgaz 

All news from Bulgaria

No published comments
Login to comment


20.03.2022  Teodor Bobochikov, Managing Partner, V-Ridium
Energy Transformation – Trends and drivers
Full text


No records in this category!


What kind of transport do you use to get to work?


We use cookies to ensure we give you the best browsing experience on our website. Find out more on how we use cookies and how you can change your settings.


What are cookies ?

A cookie is a small text file that a website saves on your computer or mobile device when you visit the site. Cookies are widely used in order to make websites work, or work more efficiently, as well as to provide information to the owners of the site.

How do we use cookies?

Website use Google Analytics, a web analytics service provided by Google, Inc. ("Google") to help analyse the use of this website. For this purpose, Google Analytics uses"cookies", which are text files placed on your computer.

The information generated by the cookies about your use of this website - standard internet log information (including your IP address) and visitor behaviour information in an anonymous form - will be transmitted to and stored by Google including on servers in the United States. Google will anonymize the information sent by removing the last octet of your IP address prior to its storage.

According to Google Analytics terms of service, Google will use this information for the purpose of evaluating your use of the website and compiling reports on website activity.

We not use, and not allow any third party to use the statistical analytics tool to track or to collect any personally identifiable information of visitors to this site. Google may transfer the information collected by Google Analytics to third parties where required to do so by law, or where such third parties process the information on Google`s behalf.

According to Google Analytics terms of service, Google will not associate your IP address with any other data held by Google.

You may refuse the use of Google Analytics cookies by downloading and installing Google Analytics Opt-out Browser Add-on. The add-on communicates with the Google Analytics JavaScript (ga.js) to indicate that information about the website visit should not be sent to Google Analytics.

Cookies are also used to record if you have agreed (or not) to our use of cookies on this site, so that you are not asked the question every time you visit the site.

Google Analytics Opt-out Browser Add-on

How to control cookies?

You can control and/or delete cookies as you wish. You can delete all cookies that are already on your computer and you can set most browsers to prevent them from being placed.

All about cookies

Managing cookies in your browser

Most browsers allow you to:
  • see what cookies you have got and delete them on an individual basis
  • block third party cookies
  • block cookies from particular sites
  • block all cookies from being set
  • delete all cookies when you close your browser

If you chose to delete cookies, you should be aware that any preferences will be lost. Also, if you block cookies completely many websites (including ours) will not work properly and webcasts will not work at all. For these reasons, we do not recommend turning cookies off when using our webcasting services.