Bulgaria’s DPS Takes a Stand Against Russian Capital with Proposed Amendments in Investment Promotion Act

DPS Proposes Law to Restrict Russian Investments in Bulgaria

In a bid to showcase its anti-Russian stance, the Movement for Rights and Freedoms (DPS) has launched a campaign against the influx of Russian capital into Bulgaria. Today, a group of deputies from the movement, led by Delyan Peevski, submitted changes to the Investment Promotion Act. The proposed amendments aim to adopt a European regulation specifically targeting “malicious, mainly Russian capital,” as stated in the bill’s rationale.

The dispatchers behind the bill explain that the goal is to safeguard the Bulgarian economy, as well as the European Union as a whole, from investments with “corrosive capital.” These are investments or acquisitions that have the potential to undermine national security, public order in Bulgaria, and the security of Bulgaria’s European and Atlantic partners.

For Peevski, improving his image in front of Western allies has become a necessity, especially after facing successive sanctions from the United States and Great Britain, which accuse him of abusing his power.

According to the bill, any attempts to invest more than 1 million euros in critical infrastructure sectors such as energy, transport, defense, electoral or financial infrastructure, media, data processing or storage, and even emerging technologies like artificial intelligence, robotics, and nanotechnologies, will be subject to special monitoring. The introduction of these measures is justified by the increasing global trend of “malicious (mainly Russian) corrosive capitals,” particularly in light of the unprovoked Russian military invasion of Ukraine.

To facilitate this, the bill proposes the establishment of an Interdepartmental Council for the screening of foreign direct investments, which will be led by a deputy minister from the Ministry of Innovation and Growth. Any individual or entity seeking to make an investment falling under the law will be required to seek permission from the council. The council itself will have discretionary power to conduct inspections of investments falling within its purview.

The dispatchers also outline penalties for violators of these rules, offering a penalty of 5 percent of the investment’s value, with a minimum fine of BGN 50,000.

The proposed law reflects the DPS’s determination to counter Russian influence in Bulgaria and protect the country’s economic and national security interests. As the bill moves forward, it remains to be seen how it will be received by other political parties and whether it will garner the necessary support to become law.

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How might the proposed stricter regulations on foreign investments, particularly from Russia, affect the stability of the European Union?

Stability of the European Union. The bill seeks to provide stricter regulations on foreign investments, with a particular focus on Russian investments, which are seen as potentially harmful and politically motivated.

The proposed amendments include measures such as enhanced oversight and screening of investments, compulsory reporting of all financial transactions exceeding a certain threshold, and the establishment of a special committee to monitor and assess the potential risks associated with foreign investments. Additionally, the bill proposes the possibility of blocking or reversing investments that are deemed to pose a threat to national security or public order.

Critics argue that the bill is politically motivated and targets Russian investments unfairly. They claim that it may discourage foreign investments in Bulgaria and damage the country’s economy in the long run. However, supporters argue that the proposed regulations are necessary to protect national interests and prevent undue influence from foreign entities.

The DPS has a history of taking a strong stance against Russia, especially in light of the country’s interference in Bulgarian politics and alleged attempts to undermine democratic processes. The party’s anti-Russian campaign has gained traction among supporters who believe that stricter regulations on Russian investments would help safeguard Bulgaria’s sovereignty and economic independence.

It remains to be seen how the proposed amendments will be received by other political parties and international stakeholders. If passed, the bill could potentially mark a significant shift in Bulgaria’s approach to foreign investments, particularly from Russia, and may pave the way for similar legislation in other European countries concerned about the influence of “malicious capital.”