MOSCOW, June 10 (UPI) -- Moscow may suspend construction of the Burgas-Alexandroupolis oil pipeline because of delays from Bulgaria, the Russian energy minister said.
Bulgaria in 2007 signed an agreement with Russia and Greece to build the 174-mile Burgas-Alexandroupolis oil pipeline to bypass crowded waterways near Turkey by crossing an overland route to the Aegean Sea
Russia's state-owned pipeline operator Transneft said late payments from Sofia are having a negative impact on project development.
Russian Energy Minister Sergei Shmatko said Moscow delays from Sofia were creating problems for the project, Russia's state-run news agency RIA Novosti reports.
"I am not saying we will stop it but we will suspend it until we understand the position of the Bulgarian side and we will stop financing the project," he said.
The energy minister said the federal budget stipulates money for the pipeline must be spent by the end of the year.
In December, Sofia said the terms of the Burgas-Alexandroupolis contract wouldn't deliver an economic benefit to the country, blaming previous leaders for shortfalls. Russian officials challenged the government's claims.
"Today we have to state that the Burgas-Alexandroupolis project is practically suspended," the minister said.
