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Bulgaria Imposes Tax on Russian Gas Passing through Turkish Stream Pipeline: A Turning Point in Energy Cooperation?

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Sometimes even the most reserved countries can spring a surprise. Bulgaria, an energy dwarf, sets the pace for the first time. Without warning, Sofia imposed a tax on Russian gas passing through its territory before reaching Serbia and Hungary. On October 13, the parliament voted to impose a new tax of 20 leva (10.25 euros) for each megawatt hour of Russian gas passing through the Bulgarian section of the Turkish Stream. This pipeline was inaugurated in 2020 by Russian President Vladimir Putin and his Turkish counterpart Recep Tayyip Erdogan. Its function is to connect Russian gas fields with Turkey and then with Europe via Bulgaria. This is what the French weekly L’Express writes in its article about Bulgaria.

A measure that aims to “reduce the profits” of Russian giant Gazprom, “and therefore the money going into the Kremlin’s coffers to finance the war in Ukraine,” according to the Bulgarian government. If Sofia no longer imports Russian gas for its own consumption, it remains a “hub for its delivery via the TurkStream gas pipeline”, the French newspaper La Tribune explains. the import of Russian gas passing through Bulgarian territory was subsequently confirmed by the European Commission. “The fees charged by Bulgaria for the transit of Russian gas to Serbia, Hungary and North Macedonia constitute a national measure and therefore it is up to Bulgaria to decide where to distribute the revenues.” , Tim McPhee, spokesman for the European Commission on Energy, told reporters. Bulgaria expects between 1.2 and 1.5 billion euros in annual revenue thanks to this new tax. If the country uses the geopolitical situation in Europe to inflate its budget, it her neighbors perceive it as an act of hostility.

“Big problem for us”

Bulgaria has drawn the ire of Hungary and Serbia, which depend on Russian gas transported through the TurkStream expansion. Serbian President Aleksandar Vucic said on October 14, in an interview with Politika newspaper, that this decision represents a “big problem” that will lead to an increase “by 100 euros per 1,000 cubic meters of gas.” “This should not apply to Serbia,” added the Serbian head of state and specified that he would discuss this topic with Bulgarian President Rumen Radev. Serbia’s concern was also echoed in Hungary. “This is unacceptable. For a member state of the European Union to threaten the gas supplies of another member state is simply contrary to solidarity and European rules,” criticized Hungarian Foreign Minister Peter Szijjártó on Monday, October 16. He defined this move as another attempt to make energy cooperation between Hungary and Russia impossible. And from the Bulgarian side? Radio silence. The decision was made without a loud statement by the government that has been in power since June, made up of two opposing forces: the reformist duo “Proceeding Change” and Democratic Bulgaria, on the one hand, and GERB, a long-ruling party backed by the United Democratic Forces, on the other. Will this tax work and be implemented? Bulgaria expects revenues from the new fee to be paid on November 14, but some Bulgarian energy experts doubt the country will receive them. Indeed, the gas pipeline can hardly be certified as Russian because it combines several sources, energy expert Kaloyan Staykov explained to the European media network EurActiv.

Breaking away from Russia?

Gazprom has not yet publicly commented on the new energy tax and it is not yet clear whether it intends to pay it. Bulgarian Finance Minister Asen Vassilev said that if Gazprom refuses to pay, its financial guarantees from contracts in Bulgaria or its assets in the country will be seized.

One thing is certain: Bulgaria chooses to gradually break away from Russia. Sofia approved on Wednesday, October 25, the construction of the first two American nuclear reactors, thus further freeing itself from Moscow. They will be of the AP1000 type, a technology developed by the American Westinghouse, according to a government press release. If it is a question of replacing the coal plants that have to close by 2038, according to the commitments made by Sofia under pressure from Brussels, this project aims above all to reduce Bulgaria’s quasi-dependence on Russia in terms of energy. In July, Sofia terminated the concession of the Russian company Lukoil for the Rosenets oil terminal, near the coastal city of Burgas, in the southeastern part of the country and on the western coast of the Black Sea. A symbol of Russian influence.

Is there a turning point in Russophile Bulgaria?

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2023-11-03 19:01:00
#Energy #dwarf #Bulgaria #pulled #gas #rug #Vladimir #Putin

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