Novinite.com is interviewing Sofia-based ambassadors of Bulgarias largest trade partners. Here is the interview with Yuriy Isakov, Ambassador Extraordinary and Plenipotentiary of the Russian Federation to the Republic of Bulgaria.

What major bilateral projects are currently in the making?

Undoubtedly, a key directionin our bilateral interactionis the implementation of the strategic South Stream project on Bulgarias territory. Currently Bulgaria has suspended work on the construction of the gas pipeline but in our view all issues, including those relating to bringing the project in compliance with the requirements of the EUs Third Energy Package, will be resolved in the nearest time possible and construction will commence.

I would like once again to highlight the fact that our Bulgarian partners and the other transit countries are interested for two reasons - in having no problems standing in the way of the implementation of the project and the commissioning of the pipeline according to planned deadlines.

First, the repeated statements coming from Kiev about a possible suspension of Russian gas transit through the territory of that country reaffirm the importance of South Stream for guaranteeing Europes energy security. This project eliminates risks to gas transit by linking Russia directly with European Union consumers.

Second, construction of South Stream means considerable investment in Bulgarias economy plus revenue from transit fees, taxes, etc. which will total about BGN 5 B for the period to 2040. This amount is quite considerable, especially taking into account the problems associated with meeting state budget targets and absorption of EU funds. This is why this project will undoubtedly give a strong boost to Bulgarias economic development.

At the same time, economic cooperation between Russia and Bulgaria is not limited to the construction of South Stream. The ongoing modernization of Russian company Lukoils petrochemical complex in Burgas stands out among other big investment projects.

I would also like to highlight the expansion of Gazproms filling stations network and the completion with funding from Moscows regional government of the unique health and recreation complex Kamchia near Varna. A number of Russian companies have shown interest in taking part in the development of Bulgarian transport and logistics sector.

What are, in your opinion, the greatest challenges in bilateral relations?

Relations between Russia and Bulgaria have been faced with a number of challenges which hinder the full-scale use of their potential.

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Yuriy Isakov: South Stream Key Direction in Moscow-Sofia Interaction