Russia-Bulgaria package deals arouse energy concerns
SOFIA, Jan. 18 (Xinhua) -- Russian President Vladimir Putin wrapped up his two-day official visit to Bulgaria on Friday, bringing home eight energy contracts that will strengthen Moscow's energy security within Europe.
The package of deals include the 10 billion euro (14.66 billion U.S. dollar) South Stream gas scheme, arousing concerns over Russia's energy grip in Europe.
It was Putin's second trip to Bulgaria since 2003.
RUSSIA'S PURSUIT
Putin and his Bulgarian counterpart Georgi Parvanov signed eight deals on Friday for cooperation in the energy and other sectors.
Topping the deals was an agreement for the construction of the South Stream pipeline project which will expand Russian gas deliveries to southern Europe.
The pipeline, which will carry 30 billion cubic meters of gas, will first cross the Black Sea and then split in two arms, with one going south to Greece and Italy, and the other northwest to Romania, Hungary, the Czech Republic and Austria before arriving in Italy.
When asked about the importance of the South Stream agreement, Putin said the infrastructure for energy resource supply in Europe has to be expanded.
Another two important projects are the Belene nuclear power plant and the Burgas-Alexandroupolis oil pipeline.
The Burgas-Alexandroupolis oil pipeline and the South Steam gas pipeline projects are in line with Russia's long-term interests and benefit European Union members including Bulgaria, Putin said in an article widely published in Bulgarian newspapers.
The Belene nuclear power plant will enable Bulgaria to become Europe's top electricity exporter in the next decade, Putin said.
Russia, the world's largest gas exporter and the second largest oil exporter, hold nearly a quarter of natural gas supplies for European countries.
The deals will consolidate the position of Russia, Europe's leading gas and oil supplier, and will rival EU plans for its own pipeline project, Nabucco, aimed at reducing the bloc's dependence on Russian gas.
Analysts said Putin appeared to be on a last major drive for Russia's energy interests before he steps down, especially aiming at boosting its energy influence in Europe by controlling the Balkan region, where supplies pass through from Russia.
Putin shrugged off the remarks, saying the deals were "an important step in the process of diversification of energy sources and supply routes, and will increase the energy security of the Balkans and of Europe as a whole."
BULGARIA HAILS
Bulgaria holds an important position on the energy map of the world for its favorable geographic location that connects the Euro-Asia continent. Four important oil and gas pipelines, which are under construction, will run through the country.
Bulgarian leaders have reiterated time and time again on different occasions that the country seeks to become the center of energy transmission in Southeastern Europe.
Prime Minister Sergei Stanishev said last October that the more oil pipelines passing through Bulgaria, the more interest the country will obtain.
During the negotiation meeting with Bulgaria, Russia's state-controlled gas monopoly, OAO Gazprom, had previously been offering Bulgaria a minority stake in the part of the pipeline that would run through Bulgaria. But as talks dragged past midnight, Gazprom agreed to an even split.
After signing these agreements with Russia, Stanishev said, "Bulgaria's interests are fully protected, because the company will be set up to build and run the pipeline on Bulgarian soil with Bulgaria holding 50 percent stakes and Russia the rest 50 percent."
President Parvanov described the package of deals as "an important step in the policy of diversification of energy sources and routes" and the implementation of the projects as "an important contribution to energy security of the Balkan region and not just of Bulgaria."
"The energy agreements signed today gave Bulgaria a 'grand slam' victory," Parvanov said, adding that each of the projects has significant economic and social benefits.
However, the country's opposition parties opposed the projects involving Russia but only for environmental, tourism and economic concerns.
Hundreds of demonstrators protested Putin's visit in Sofia on Thursday and Friday, saying the deal would make Bulgaria dependent on Russia.
EUROPE SHRUGS
The European Union (EU) reacted with a chilly statement, saying its Nabucco project is a higher priority to the South Stream gas pipeline, the European Commission spokesman was quoted by Bulgarian press as saying on Friday.
"We consider the Nabucco a priority project, rather than the South Stream, because it will diversify not only the transport routes, but also the supply sources," said Ferran Tarradellas, spokesman for European energy commissioner Andris Piebalgs.
The Nabucco pipeline, which is designed to ease Europe's reliance on Russia, will transport Central Asian gas from the Caspian basin to Europe but bypass Russia.
Analysts saw no threat from South Stream to the EU's Nabucco project, in which Bulgaria is also involved.
But many countries in Central and Eastern Europe worry that their dependence on Russian energy could make them vulnerable to Russian interference in their internal affairs.
For its historical and geographic reasons, the Balkan region has become a focus of energy competition for Russia, the European Union and the United States.
Analysts said Bulgaria might be more dependent on Russia's energy through the establishment of energy deals between the two countries.
Putin's visit was also coincident with the 130th anniversary of the liberation of Bulgarians with the aid of Russia. Bulgaria had been ruled by the Ottoman Turkish Empire for about 500 years.
Putin also inaugurated the Year of Russia in the Bulgarian cultural festival on Thursday.
Visiting Russian President Vladimir Putin(L, back row) and Bulgarian President Georgi Parvanov (R, back row) attend a signing ceremony of the agreement on the Belene nuclear power plant in Sofia, Bulgaria, Jan. 18, 2008. (Xinhua Photo)
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