Bulgaria and Russia Proceed With the South Stream Pipeline

The last hurdle for the construction of the South Stream natural gas pipeline fell Nov. 15 as Russia and Bulgaria signed a final investment decision. Immediately thereafter, the two sides signed an agreement for a 10-year natural gas delivery contract with a 20 percent discount over current prices between the Russian state natural gas provider and its Bulgarian counterpart, Bulgargaz. Bulgaria was the last, and most critical, transit state to sign on to South Stream. The project will allow Russia to export natural gas directly to Europe, making it a more attractive natural gas supplier to the Europeans.