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Bulgaria, Greece still at odds over $1.3bn Russian oil pipeline

SOFIA – Bulgaria and neighbor Greece have failed to resolve a dispute over a $1.3 billion pipeline deal to transport Russian oil.

The stalled venture was discussed at a joint cabinet meeting held for the first time by the two countries Tuesday to discuss proposals for common defense, economy and energy projects.

The proposed 282-kilometer pipeline was to bring Russian oil - brought by tanker - through Bulgaria to the Greek port of Alexandroupolis, bypassing Turkey's busy Bosporus Straits.

Bulgarian Prime Minister Boiko Borisov scrapped the venture, citing environmental concerns. But Greek Prime Minister George Papandreou on Tuesday said the venture remains a priority.

Talks
Bulgarian Prime Minister Boiko Borisov voiced environmental concerns, saying the project could negatively impact Burgas, a Black Sea tourist resort in his country.

"The environment is dear to us," Borisov said after a joint cabinet meeting in the Bulgarian capital Sofia, during which he was joined by his Greek counterpart Giorgos Papandreou to discuss joint defence, economy and energy projects.

The Bulgarian tourist industry is largely against the project because of concerns about possible oil spills during the transport to the Greek port of Alexandroupolis.

Papandreou reiterated Greece's strong commitment to the project. He said his country cares about its environmental impact, but would wait for the expert assessment of the risks.