Bulgarian Energy Holding Admits to Having Started Assimilating South Stream Loan Back in July

Back in July, with the seal of approval of then-already resigned energy minister from the Socialist Party – Dragomir Stoinev, BEH and Gazprom increased their participation in the joint-venture with BGN 191 million (EUR 95.5 m) each, thus allowing the loan assimilation.

The raise of the capital of the South Stream Bulgaria joint-venture in July has allowed the Bulgarian Energy Holding (BEH) to start assimilating a EUR 620.7 million loan provided by Russia’s Gazprom for the construction of the pipeline. With first gas quantities envisaged to start flowing in 2018, the loan is to be paid back until 2017, with an interest rate of 4.25%, the Q3 financial statement of the holding reads.

Back in July, with the seal of approval of then-already resigned energy minister from the Socialist Party – Dragomir Stoinev, BEH and Gazprom increased their participation in the joint-venture with BGN 191 million (EUR 95.5 m) each.

The move surfaced weeks later in August when interim energy minister Vasil Shtonov took the case to the prosecution, leaving much doubt whether he knew or not about the transaction. Mr. Shtonov denied however that the raise of capital would allow for construction works to kick off in a time when Bulgaria was struggling to convince the European Commission that work on the disputed pipeline project had been halted.

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