Gazprom Agreements on South Stream Breach EU Law; Bulgaria and Serbia Ask EU to Negotiate with Russia | The Jamestown Foundation
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The construction of the South Stream natural gas pipeline was effectively put on hold after the European Commission (EC) announced that Russia’s bilateral agreements with Bulgaria, Serbia, Hungary, Slovenia, Greece and Austria were in breach of European Union law. Klaus-Dieter Borchardt, director for energy markets at the European Commission, told a meeting at the European Parliament on December 4 that the inter-governmental agreements must be renegotiated from scratch.
The EC warned that if Russia refuses to renegotiate the contract conditions, the five EU member states and Serbia, which is a member of the EU-backed Energy Community, must suspend implementation of their agreements with Gazprom or will face heavy penalties (Capital Weekly, EurActiv, December 5; Duma, Sofia News Agency, December 6).
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