Market Analysis

18-19 September 2009 Russia's delegation headed by Energy Minister Sergei Shmatko visited Bulgaria. As part of Russia's delegation head of state corporation Rosatom, Sergei Kiriyenko, and representatives of Russia's energy companies.

During the visit, held talks with Prime Minister of Bulgaria Boyko Borisov and the Minister of Economy, Energy and Tourism of Bulgaria Traycho Traykovym.

addressed issues related to the implementation of the three major joint projects in the energy sector - the construction of Belene nuclear power plant, gas pipeline South Stream and Burgas-Alexandroupolis.

Following the talks in the near future is planned creation of two working groups for more intensive work on the organization of the project South Stream.

The project to build a nuclear plant Belene will conduct a joint legal and financial audit to determine common approaches to its implementation.

As the Bulgarian Minister Traycho Trajko: We are engaged in an intense and very interesting discussions on large projects with participation of Russia in Bulgaria. All projects must be based on transparency, have a clear legal framework and funding structure. We will act efficiently and quickly - said Bulgarian Minister.

Bulgarian colleagues, it was a clear understanding of the need for continued cooperation between the two countries on all major projects of energy cooperation, - said Minister of Energy Minister Sergei Shmatko, thanking the Bulgarian colleagues for the confidence and desire to implement energy projects. We understand them very pragmatic and interested approach to the details and specifics of each project. We have reaffirmed our commitment to fully open and professional conversation to explore and agree on all disputed issues. We do not discuss issues related to the fact - or may not be this project we talked about how the most effective and mutually beneficial to implement them, - he said.

As noted after the meeting, Prime Minister of Bulgaria Boyko Borisov: Russia has proved itself with maximum openness and willingness to inform. In the draft NPP Belene, he said: Russia has understood the fact that we study in detail the project. In order, separated by phases of the project, so the price was clear and did not have to pay a penalty.

According to Sergei Shmatko, the implementation of these projects will allow Bulgaria to become a major transportation hub and the largest energy exporter in the Balkans, but also will promote energy security on the European continent.

Russia company Atomstroyexport won a tender for the construction of Belene NPP in 2006. Agreement for the construction of nuclear power plant was signed in January 2008 during the visit of President Vladimir Putin in Bulgaria. Cost of the project under a contract estimated at nearly 4 billion euros for two units of 1000 MW. The draft nuclear power plant, which received European security certificate used by the most advanced nuclear technology.

pipeline South Stream output to 63 billion cubic meters of gas per year will ensure stability and security of hydrocarbon supplies to the European market. It will be held under the Black Sea from Novorossiysk to the Bulgarian port of Varna. Then two of its branches will stretch through the Balkans to Italy and Austria.

project Burgas-Alexandroupolis oil involves the delivery of oil to bypass the congested Bosphorus and Dardanelles. It is planned that the pipeline length of 280 kilometers will be held from the Bulgarian port of Burgas on the Black Sea to the Greek town of Alexandroupolis on the Aegean coast. The length of the pipeline - 285 km, capacity - 35 million tons per year, with possible expansion to 50 million tons