Russia, Bulgaria ink pipeline deal

SOFIA, Bulgaria, Jan. 18 (UPI) -- Russia signed an energy supply deal with Bulgaria Friday through the South Stream pipeline, dealing a blow to the U.S.-backed Nabucco pipeline.

Russia will implement the South Stream gas pipeline project, which will compete with Nabucco, RTT News reported.

The deal was agreed to by Bulgaria's Council of Ministers and visiting Russian President Vladimir Putin.

"Bulgaria becomes one of the key links in the European energy chain," Putin said.

The deal is expected to bring Bulgaria more than $2 billion a year. The two have also signed agreements on the construction of an oil pipeline and a nuclear power station

The 559-mile pipeline is set to cross from Russia under the Black Sea to Bulgaria and then branch off to deliver further into southern Europe, and Russia has offered to put a major gas hub in Serbia.

The estimated capacity of the pipeline is about 30 billion cubic meters of natural gas per year. That project is worth about $14.66 billion.