On November 13, 2010, Russian Prime Minister Vladimir Putin arrived in Sofia for a one-day visit at the invitation of Bulgarian Prime Minister Boyko Borisov. The main focus of the talks was the energy projects between the two countries, and the result was the signing of documents on “South Stream” and the implementation of the social security agreement.
In the presence of the two prime ministers, Maya Hristova, Executive Director of the Bulgarian Energy Holding, and Alexey Miller, Chairman of the Management Board of “Gazprom”, signed an agreement to establish a joint-stock company for the construction of the Bulgarian section of the gas pipeline. The charter of the project company was also approved.
Company with equal shares
The Bulgarian Energy Holding and “Gazprom” were to own 50% each of the company’s capital. The company was to be responsible for the design, financing and construction of the Bulgarian section of the route. It was established in December 2010 as “South Stream Bulgaria” AD.
According to the plans at the time, the gas pipeline was to run along the bottom of the Black Sea to the Bulgarian coast and then continue through Serbia, Hungary and Slovenia to Austria. Bulgaria was presented as the first land-based country along the route and as a potential hub for the transit of Russian natural gas to Europe.
“If we implement the South Stream project, your country will receive almost $2.5 billion,” Vladimir Putin said, as quoted by the Bulgarian National Radio.Boyko Borisov also linked the project to expected revenues for the budget. “By signing today’s agreement, we are giving future governments in Bulgaria the opportunity to receive more than $2 billion annually from this pipeline,” the prime minister said.
Document on social rights
During the visit, Minister of Labour and Social Policy Totyu Mladenov and Russian Deputy Minister of Health and Social Development Yuri Voronin signed an agreement on the implementation of the social security agreement between the two countries.
The agreement, signed in 2009, had already been in force since March 20, 2010. It provides for insurance periods acquired in Bulgaria and Russia to be taken into account when determining eligibility for pensions and other social benefits. The document of November 13 regulates the procedures and exchange of information between the institutions responsible for implementing the agreement.
The project never reached the construction stage
The initial plans for “South Stream” were not implemented. On December 1, 2014, Russia announced the termination of the project following protracted disputes with the European Commission and Bulgaria over its compliance with European legislation. Later, “South Stream Bulgaria” AD began liquidation proceedings.
Thus, the agreement signed in November 2010 remains as the foundation of a project company created for a gas pipeline that was never built. The social security agreement, however, continues to regulate relations between Bulgaria and Russia in this area.
Sources: old-news.bnr.bg, investor.bg, mediapool.bg