September 2011, Vol. 238 No. 9

Projects

East European Oil Pipeline Facing Russian Freeze

Russia’s oil pipeline monopoly Transneft will freeze construction of the troubled Burgas-Alexandroupolis project, which has been largely obstructed by Bulgaria. Transneft will not abandon the oil pipeline project – despite its partner Bulgaria’s failure to provide financing – but will freeze the construction this fall.

Construction of the Trans-Balkan oil pipeline, designed to link the Black Sea port of Burgas to Alexandroupolis on the Aegean Sea, has long been hampered by the position of Bulgaria, which has threatened to abandon the project over environmental risks. Most of the pipeline was planned to run through Bulgarian territory.