Bulgargaz to Sue Gazprom for BGN 400 Million Over 2022 Gas Supply Termination

Sofia, Bulgaria – In a recent briefing at the Ministry of Energy, Bulgargaz announced its intention to file a lawsuit against Gazprom Export, seeking damages of BGN 400 million. 

This legal action follows the abrupt termination of gas supplies to Bulgaria by the Russian company in April 2022, which significantly disrupted the country’s energy sector.

The cessation of gas deliveries occurred two months after the conflict in Ukraine began, marking a critical juncture in Bulgaria’s energy stability. 

Gazprom Export’s decision to halt supplies was part of a broader strategy amid escalating geopolitical tensions, leaving Bulgaria to scramble for alternative energy sources.

Caretaker Minister of Energy Vladimir Malinov provided insights into the situation, highlighting efforts to mitigate the impact of the supply disruption. 

In a strategic move to secure more favorable terms and ensure energy security, Malinov recently engaged in negotiations with the Turkish company Botas.

During his visit to Turkey at the end of April, Minister Malinov successfully negotiated a discount of 11 million euros for June from Botas. 

This discount represents a significant financial relief for Bulgaria, which has been grappling with the financial burden of securing alternative gas supplies under the current contract.

The existing agreement with Botas, signed during the tenure of former Prime Minister Galab Donev, spans 13 years and is valued at over 2 billion dollars. 

Despite its long-term nature, the contract has proven to be economically challenging, prompting the need for renegotiation.Minister Malinov’s proactive approach underscores the Bulgarian government’s commitment to optimizing its energy procurement strategy. 

“The terms of the current contract with Botas were unsustainable, and it was imperative to seek better conditions to protect our national interests,” Malinov stated.

The discount from Botas is part of a broader effort to stabilize Bulgaria’s energy sector and reduce the financial strain on Bulgargaz. 

This initiative is particularly critical as the country navigates the complexities of the ongoing geopolitical landscape and its ramifications on energy supplies.

In addition to the renegotiated terms with Botas, interest in Bulgaria’s energy market is on the rise. 

Minister Malinov revealed that 13 companies have expressed interest in purchasing gas through Turkey via the contract with Botas. This growing interest reflects confidence in Bulgaria’s strategic positioning as a transit hub for energy supplies in the region.

The legal battle with Gazprom Export, however, remains a significant aspect of Bulgaria’s energy strategy. By seeking damages, Bulgargaz aims to hold Gazprom accountable for the substantial financial and operational disruptions caused by the abrupt supply termination.

The Ministry of Energy’s briefing highlighted the multifaceted approach Bulgaria is adopting to secure its energy future. 

From legal recourse against Gazprom to renegotiating contracts and attracting new market players, the Bulgarian government is actively working to enhance energy security and economic stability.

As the situation evolves, Bulgaria’s strategic decisions in the energy sector will be closely watched, both domestically and internationally. 

The outcome of the legal action against Gazprom and the success of the renegotiated terms with Botas will play crucial roles in shaping the country’s energy landscape in the years to come.

This article was created using automation and was thoroughly edited and fact-checked by one of our staff editorial members