Brussels, 10/06/2014 (Agence Europe) - Whilst Bulgaria has agreed to suspend the work on the gas pipeline project South Stream on its territory, Serbia is refusing to do likewise. The European Commission called Belgrade to order on Tuesday 10 June, stressing Serbia's obligations as a member of the Energy Community with regard to EU legislation on the single energy market.
On 8 June, Bulgarian Prime Minister Plamen Orecharski announced the suspension of construction work on the Bulgarian section of South Stream, thereby complying with the Commission's injunction, it having opened infringement proceedings on 2 June against Sofia on the procedure for granting public procurement contracts in the framework of the infrastructure project steered by the Russian gas company Gazprom in Bulgaria (see EUROPE 11095). Examinations of the procedures for the award of contracts in the other member states of the EU which are stakeholders to the South Stream project (Austria, Croatia, Greece, Hungary, Slovenia and Italy) are also underway.
On 9 June, Serbia denied having taken the same decision as Sofia. “A decision of this kind should be taken by the Serbian government, but it has not met. Work on South Stream is going as planned. If there are any changes, the government will take a decision and you will be informed of this”, Serbian Prime Minister Aleksandar Vucic said, speaking before the press, disclaiming comments attributed to one of his ministers announcing the suspension of work on the Serbian section.
The Commission raised the stakes on Tuesday, reminding Serbia of its “specific obligations” vis-a-vis the EU acquis in energy matters, as part of its membership of the Energy Community. “As of 1 January 2015, Serbia needs to start implementing in full the provisions of the third energy package, which implies full liberalisation of energy market for all customers. (…). The provisions concerning unbundling, third-party access and tariff setting have to be fully respected. Any exemptions will need to be duly requested and accepted”, stressed the spokesperson to Commissioner for Enlargement Stefan Füle, also reiterating the Commission's concerns at the compatibility of the South Stream agreement with obligations regarding EU law.
South Stream will connect Russia to Bulgaria under the Black Sea, avoiding Ukraine, to serve the European market by two branches. The first, to the south, will travel to Italy via Greece; the other, to the north, will stretch to Austria, Croatia and Slovenia, via Serbia and Hungary. (EH)