UPDATE 1-Bulgaria wants more from Russia on energy projects

* Russian energy minister in Sofia on Thursday

* Sofia revises commitment to oil, gas pipelines

* New cabinet likely to reduce stake in nuclear project

(Adds comment from Atomstroyexport, Traikov on Belene)

By Anna Mudeva

SOFIA, Sept 15 (Reuters) - Bulgaria's new centre-right government struck a firmer tone with Russia on vital energy links, reminding Moscow that these should fit in with the European Union's agenda too.

Sofia will demand economic benefits from Moscow in order to confirm its commitment to Russian-backed major energy projects, Economy and Energy Minister Traicho Traikov said on Tuesday.

Traikov will also tell Russian Energy Minister Sergei Shmatko, who is due to visit Sofia on Thursday, that Bulgaria's participation in Russian projects will have to fit in with the European Union's plans to boost security of supplies.

Bulgaria's GERB party, which won July general elections, has launched a review of plans to build a new nuclear power plant as well as participate in the the South Stream gas pipeline and the trans-Balkan oil pipeline.

The government has said it wanted to see whether the energy projects matched national interests and will seek the EU's advice before taking a decision. [ID:nLA221835] [ID:nL2526124]

It has also expressed readiness to steer Bulgaria closer to the EU, which it joined in 2007, after the previous Socialist-led government irked Brussels and the United States by allowing greater influence from Moscow.

"We will express the expectation to see economic benefits for our country from joint projects during the forthcoming talks," Traikov told reporters. "All this should be put in a greater European context to ensure security of supplies," he added but did not give details.

Bulgaria, almost entirely dependent on Russia for its gas and oil, was the country worst hit by the January price row between Moscow and transit country Ukraine that left many consumers and business in eastern Europe without gas.

PIPELINE, NUCLEAR DILEMMAS

The new government has already said it will give a priority to the EU-sponsored Nabucco pipeline project due to bring Caspian gas via the Balkans to central Europe and reduce the bloc's dependence on Russian gas.

Sofia intends to keep its commitment to the Russian-backed South Stream pipeline aimed at delivering gas to Europe under the Black Sea but seen as a rival to Nabucco.

Borisov, however, told national television last week he saw no benefits in Bulgaria's participation in a planned pipeline to carry Russian crude oil from the Bulgarian Black Sea port of Burgas to the Greek port of Alexandroupolis on the Aegean.

Soaring costs, dwindling budget revenues and lack of funding have also prompted Sofia to rethink plans to build a new nuclear power plant in Belene on the Danube.

The previous government had contracted Russia's Atomstroyexport to build the new 2,000 MW plant and picked German RWE (RWEG.DE) for a 49-percent stake in the plant.

Traikov told private broadcaster Nova television on Tuesday that Belene would help ease Balkans power shortages and that Sofia should give the project a chance -- but without government funding.

His ministry said earlier on Tuesday that Sofia may cut its 51 percent stake in Belene to 20 percent as it would seek to attract more investors and raise funding.

State-news agency BTA quoted Atomstroyexport vice president Gennadiy Tepkian as telling reporters in Sofia that Belene's costs could jump to 6 billion euros at most from initially estimated 4 billion. Traikov has said costs might surge to 10 billion euros.

Tepkian said Atomstroyexport would claim compensations if Sofia abandoned the project. Traikov told Nova the compensation stood at 800 million euros under the contract with the Russians.

Sofia will decide the fate of the projects by November. (Additional reporting by Irina Ivanova, editing by William Hardy)