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The Prime Minister Kiril Petkov during the hearing in the National Assembly on the suspended gas supplies by Gazprom. Photo by NIKOLAI LITOV
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- The only move we didn’t make was that we didn’t give a puppy, the prime minister said.
The government’s priorities regarding the gas crisis are three – to have enough gas, to supply with minimal risk and at the best price. This was stated by Prime Minister Kiril Petkov during the hearing in the National Assembly regarding the suspended gas supplies by Gazprom.
Petkov pointed out that 4 months ago the government found Bulgaria completely dependent on Gazprom, paid BGN 3 billion for a pipeline that we cannot use, an unfinished connection with Greece in poor condition.
He described how the letter was received from Gazprom for a unilateral change in the contract regarding the ruble account and the conversion of the money that the state has to pay.
According to him, with the change made, it is not known what the price will be at any given time, because it depends on the dollar-ruble or euro-ruble exchange rate. By introducing a last resort between Bulgaria and Gazprom, we are introducing a country that is not under a contract, which is a risk whether we will receive gas at all, Petkov explained why our country refuses to pay for supplies in rubles.
“What did Russia tell us? We are violating the contract unilaterally, the price may vary and your deliveries are uncertain, this is what Russia told us – it was a handshake and a clear unilateral breach of contract. However, we were ready for this scenario. We are working on the diversification and the process of development of the gas connection with Greece. We have passed along the entire route, I informed Kyriakos Mitsotakis more than 20 times in which part the work should be accelerated, the physical date of completion of the interconnector will be June 30, “Petkov said. He added: “We are talking to the Azerbaijani country not to wait until June 30, but to receive gas at the end of May. We had a ready plan to buy liquefied gas. Gas supply has not decreased, nor has the price jumped so far, although Gazprom only gave us 24 hours.
Petkov pointed out that tomorrow the European Commission will open a working group in Bulgaria regarding the regional hub, which will work in Bulgaria. The energy ministers of a number of countries will come to Bulgaria. According to him, we are negotiating with Egypt and the United States for supplies of liquefied gas.
The Minister of Energy Alexander Nikolov said from the rostrum that the infrastructure on which natural gas is running has existed since the 1970s, to say that it was built in the last 10 years is, to put it mildly, strange. Thus, he replied to the former minister, now GERB MP Temenuzhka Petkova. Nikolov added that 25% is approximately built now, costs BGN 3 billion and depends on one supplier, the payment of the built also depends on one supplier.
Nikolov told lawmakers that during the war, concerns about a third partner, especially one from Russia, were touching. He said that the failure to take into account the efforts of Bulgargaz and the Bulgarian government not to stop supplies was strange.
The head of the Bulgarian Energy Holding Ivan Andreev said that the financial resources have been provided, additional consultants have been hired to provide an analysis of the contracts and relations with Gazprom. The holding is supporting the efforts of Bulgargaz and Bulgartrangaz, orders have been issued and funding has been secured, Andreev said.
On April 1, Bulgargaz received a letter that the shipments under the contract with Gazprom Export must be in accordance with the decree of the Russian president, the head of the company Lyudmil Yotsov told the deputies. Until then, the method of payment under the contract could not be applied, the Russian company said. The new way is for Bulgargaz to open two bank accounts – one in dollars, the other in rubles, with Gazprombank. The Bulgarian company has to transfer the payment in dollars, from then on Bulgargaz has no control over the funds. Gazprombank converts currency, sells them at auctions on the Moscow Stock Exchange, credits Bulgargaz’s bank account and the ruble account, and pays Gazprom Export.
Bulgargaz has consulted an international consulting company. According to her, the new mechanism carries a real risk that Bulgargaz will fall into delay and default on its financial obligations to the Russian company. There is no mechanism in it to protect the Bulgarian company.
The decree, which is mandatory for Russia’s gas supplier, contains other conditions that increase legal uncertainty. There is also a reputational risk of violating EU sanctions, Yotsov said.
After the suspension of deliveries at 9 am on April 27, Bulgargaz took measures to prevent the introduction of a restrictive regime.
We are actively working to prepare a pan-European solution so that EU sanctions are not violated and energy sources are provided for member states, said Antoan Gechev, chairman of the State Intelligence Agency.
“It should be noted that private energy companies are not explicitly mentioned in the EU sanctions against Moscow, so it is assumed that they can still accept payments in Russian rubles. According to unconfirmed information, there are currently private companies in Member States. of the EU, who have opened accounts in Russian banks, “Gechev said. According to him, in some countries there is a tendency to pay in rubles.
In response to a parliamentary question, Prime Minister Kiril Petkov reiterated that we expect Azeri gas to flow on June 30. He added: “The only move we didn’t play correctly was that we didn’t give a single puppy.”
GERB MP and former Deputy Energy Minister Zhecho Stankov asked for a precise answer – whether from July 1, Azerbaijani gas will be received in full and at a price specified in the contract. Prime Minister Petkov stepped on the rostrum and replied: “Yes.”
Information from today – there is an opportunity on the spot market to buy quantities that are sufficient to supplement the Azeri gas for all our consumption for this year. The quantities so far come from the states and here the question is what price we will negotiate, Petkov added.
The Minister of Energy Nikolov said in response to a question that if Bulgargaz agreed to exchange and give control over its money to a third country – Gazprombank, and the adoption of the mechanism by decree of the Russian President would increase the price of gas from 11 to 17%. The other danger is that the adoption of this scheme means that it is accepted to cancel the current contract.
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