The deal of Galab Donev’s cabinet with “Botash” practically released Russian gas to Europe
The European Commission is investigating the deal that allows the Bulgarian gas operator Bulgargaz to gain access to gas supplies through Turkey. Possible breaches of European Union competition rules are being investigated, according to a letter cited by ICIS.
In the letter sent earlier this month, the EU’s Competition Directorate-General asked Bulgargaz to send a comprehensive list of documents, including information related to supply agreements with Turkish operator Botash and capacity reservation of Turkish- the Bulgarian border.
In addition, the directorate asked Bulgargaz to send information about contracts that have been concluded or are in the process of being negotiated, under which the Bulgarian gas operator can act as an exclusive representative or distributor for the supply of gas in Bulgaria or elsewhere in the EU.
The investigation comes amid concerns that Bulgargaz may be the only company in the EU that has access to natural gas through Turkish infrastructure and is potentially acting as an intermediary for gas secured in Turkey and delivered to the region.
When the deal was first announced in January, the European Federation of Energy Traders raised concerns about possible distortions of competition.
Bulgaria’s government, formed after parliamentary elections in April, also commissioned an investigation into the supply deal as part of a wider review of the previous administration’s performance, saying it lacked transparency and would cost the country billions.
Details of the deal were disclosed by ICIS earlier this year.
The agreement, valid for 13 years, allows “Bulgargaz” and “Botash” to share the daily capacity of the Strandja-Malko Tarnovo border crossing. Previously, the interconnection was used to supply Russian gas to Turkey via the Trans-Balkan Gas Pipeline through Bulgaria.
Under the agreement, Bulgargaz can import liquefied natural gas into Turkey and withdraw a similar amount of regasified gas from the border point. Botash can instruct Bulgargaz to deliver the LNG to Turkish terminals or elsewhere in Europe.
In addition, “Botash” can ask “Bulgargaz” to reserve capacity through the Bulgarian gas transmission system for its own export needs, either to Bulgaria, or to supply quantities to neighboring countries such as Romania, Serbia or Greece.
The agreement signed in January gave Bulgaria access to Turkish liquefied gas terminals after 13 years of talks.
From October 13 this year, Bulgaria introduced a fee of BGN 20 for the transit of Russian gas. Its goal is to secure another BGN 2 billion for the budget, and the other is to make the EU countries that still have contracts with Gazprom look for other suppliers.
However, the tax strained our relations with Serbia and Hungary. The two countries reacted sharply, and on Tuesday, Serbian Deputy Prime Minister Sinisa Mali and Hungarian Foreign Minister Peter Szijjártó issued a joint statement.
They declared the actions of Bulgaria as hostile towards their countries and accuse that the security of energy supplies is endangered.
In recent weeks, Botash has announced a number of new supply agreements, including with buyers in Hungary, Romania and Moldova. The volumes are expected to transit through Bulgaria.
2023-10-19 18:50:00
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