Novinite: Yuriy Isakov: South Stream Key Direction in Moscow-Sofia Interaction
Novinite.com is interviewing Sofia-based ambassadors of Bulgaria’s largest trade partners. Here is the interview with Yuriy Isakov, Ambassador Extraordinary and Plenipotentiary of the Russian Federation to the Republic of Bulgaria.
What major bilateral projects are currently in the making?
Undoubtedly, a key direction in our bilateral interaction is the implementation of the strategic South Stream project on Bulgaria’s territory. Currently Bulgaria has suspended work on the construction of the gas pipeline but in our view all issues, including those relating to bringing the project in compliance with the requirements of the EU’s Third Energy Package, will be resolved in the nearest time possible and construction will commence.
I would like once again to highlight the fact that our Bulgarian partners and the other transit countries are interested – for two reasons - in having no problems standing in the way of the implementation of the project and the commissioning of the pipeline according to planned deadlines.
First, the repeated statements coming from Kiev about a possible suspension of Russian gas transit through the territory of that country reaffirm the importance of South Stream for guaranteeing Europe’s energy security. This project eliminates risks to gas transit by linking Russia directly with European Union consumers.
Second, construction of South Stream means considerable investment in Bulgaria’s economy plus revenue from transit fees, taxes, etc. which will total about BGN 5 B for the period to 2040. This amount is quite considerable, especially taking into account the problems associated with meeting state budget targets and absorption of EU funds. This is why this project will undoubtedly give a strong boost to Bulgaria’s economic development.
At the same time, economic cooperation between Russia and Bulgaria is not limited to the construction of South Stream. The ongoing modernization of Russian company Lukoil’s petrochemical complex in Burgas stands out among other big investment projects.
I would also like to highlight the expansion of Gazprom’s filling stations network and the completion with funding from Moscow’s regional government of the unique health and recreation complex Kamchia near Varna. A number of Russian companies have shown interest in taking part in the development of Bulgarian transport and logistics sector.