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Report: The South Stream Gas Pipeline Project and the Capture of the State

01.11.2016

 

                                                                                         

 

The report looks at the South Stream Gas Pipeline Project (SSGPP) as an avatar of the phenomena of State Capture.

The analysis focuses on the SSGPP from the perspective of the state capture concept. State capture is perceived as a special form of corruption, in which private interests overtake state functions without damaging the wholeness of state institutions structure-wise. 

Furthermore, the report examines the history of the project and pinpoints the steps, which ultimately have turned it into an instrument for state capture. The bilateral agreement between Bulgaria and Russia of 2008, which serves as a general framework for the development of South Stream, includes drastic violations of European law. These violations are the first steps in the emergence of an environment, which will later accommodate the capture of key government functions within the project.

The report follows the end of the project as well as the consequences of that end. Special attention is given to the South Stream project from a business perspective and its probable place within Bulgaria’s and South Eastern Europe’s energy infrastructure. 

The report also looks at the development of the project and its political influence in neighboring countries, affected by the possible realization of South Stream.

The report’s conclusion is that the South Stream project demonstrates the risks of state capture through large infrastructure projects.

You can dounloat the full report (in Bulgarian) here or the executive summary (in English) here.