Bulgaria: No Deal - No Discount

Bulgaria will receive an 11.1% discount on the price of natural gas discounts from Russia, only after it signs the final investment decision on the South Stream gas pipeline project.

However the price reduction, estimated to be worth estimated at around USD 115 – 120 million, will be retroactive as of April 1st.

The comments of Bulgarian Minister of Economy, Energy and Tourism Delyan Dobrev which appear to to clarify the timing of the discount coming into effect, were reported by the FOCUS News Agency.

Earlier it was reported Gazprom may have to undertake financing the construction of the Bulgarian section of the South Stream gas pipeline as the result of Bulgaria not being in the financial position to commit to development of the pipeline across its territory.

The Bulgarian side has said that the signing of the final agreement has been delayed was due to new demands from Russia relating to the South Stream financial model.