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European Commission asks Bulgaria to suspend South Stream construction

The European Commission has sent Bulgaria a letter of formal notice asking for information on the construction of the South Stream gas pipeline, a preliminary measure which might lead to infringement proceedings and potential fines for Bulgaria. The contracts for the project may break EU rules, namely rules preventing gas suppliers from controlling access to supply networks. This European demand follows tripartite discussions between Russia, Ukraine and the European Union on Russian gas supplies and the Commission is seeking to leave the 63 bcm/year South Stream project at a standstill without political changes by Russia over Ukraine.

In December 2013, the European Commission had recommended to all EU members having signed agreements with the South Stream gas pipeline project to renegotiate the terms of the deals. If Gazprom proved reluctant to reopen negotiations on the South Stream, member States would be required not to apply the agreements, on penalty of infringement procedures.