UPDATE 1-Bulgaria vote winner wants temporary freeze on energy

Fri Jul 10, 2009 12:36pm EDT
 
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* GERB tells outgoing cabinet to wait on energy projects

* Wants temporary freeze on Belene, South Stream, gas deals

(Updates with official comment in paragraph 6)

By Tsvetelia Ilieva

SOFIA, July 10 (Reuters) - Bulgaria's prime minister-designate Boiko Borisov called on the outgoing government on Friday to halt talks on major energy projects such as the South Stream gas pipeline until his new cabinet takes over.

Borisov said he was concerned the Socialist-led cabinet was making financial commitments that could worsen the budget situation in the European Union member state, hit by the global economic crisis and falling revenues.

"We are receiving worrying signals for acts in state-owned companies, which are not taking into account the financial and economic crisis and the interests of the country as a whole," he wrote in a letter to Economy and Energy Minister Petar Dimitrov.

The centre-right GERB party won by a landslide July 5 general election and its leader Borisov is expected to head a new government by the end of the month.

The letter said talks on all major energy projects will be renewed once the new government takes office and reviews them.

The state-owned Bulgarian Energy Holding in charge of the major energy projects said in a statement it had not signed any agreements that will force the next government to carry out obligations that contradict the national interest.

Borisov urged Dimitrov to temporarily suspend talks on Bulgaria's participation in the Russian-backed South Stream project due to bypass transit country Ukraine and deliver gas to south-eastern Europe under the Black Sea.

SOUTH STREAM VS NABUCCO?

The Gazprom-led (GAZP.MM) 10 billion euro project is seen by analysts as a rival to European Union-backed Nabucco pipeline, intended to reduce Europe's energy dependence on Russia.

Bulgaria has signed a broader agreement with Russia over South Stream but is yet to overcome some disagreements about the route and the ownership of the new pipeline on its territory.  Continued...

 

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