Russian oil pipeline monopoly Transneft will freeze construction of the Burgas-Alexandroupolis oil pipeline project this fall, but will not abandon it despite its partner Bulgaria failing to provide financing, Transneft Vice President Mikhail Barkov said on Friday.
"We are not giving up Burgas-Alexandroupolis. The project is interesting and approved by the European Union. We will not abandon the project, but in October or November we will freeze it, put it to sleep," said Barkov.
The construction of the Trans-Balkan oil pipeline, designed to link the Black Sea port of Burgas to Alexandroupolis on the Aegean Sea, has long been hampered by the position of Bulgaria, which has threatened to abandon the project due to environmental risks. Around half of the pipeline was to run through Bulgarian territory.
Transneft has repeatedly complained that Bulgaria was failing to finance its part of the project. Media has said the project was likely to be suspended while Transneft only said it would minimize its spending on the pipeline.
The 300-kilometer pipeline is designed to transport 35 million tons of oil a year, with a possible expansion to 50 million tons, to ease the tanker traffic burden in the Bosporus and the Dardanelles straits. Russia owns 51 percent in the project, Bulgaria and Greece equally share 49 percent.
