In a move that threatens to strain EU consensus and jeopardize Bulgaria’s Schengen aspirations, Hungary has reportedly issued a threat to block Bulgaria’s bid to join the Schengen area unless fees for the transfer of Russian gas are removed.
The Financial Times reported on Tuesday, citing three sources familiar with the discussions. The Hungarian authorities have not officially commented on the matter.
The threat comes amid ongoing disputes over a tax imposed by Bulgaria on the transfer of Russian gas, a move that Hungary deems a hindrance to its energy imports.
The Financial Times characterized this threat as “Prime Minister Viktor Orbán’s latest move to undermine EU consensus ahead of this week’s summit of EU leaders, at which he vowed to block financial and political support for Ukraine.”
The tax in question, amounting to BGN 20 per megawatt-hour for gas transmission through Bulgaria, has been a point of contention.
On Monday, political parties GERB and “We Continue the Change – Democratic Bulgaria” announced their decision to waive this tax, seeking to alleviate concerns and avoid impeding Bulgaria’s progress toward Schengen membership.
The Financial Times highlighted the Hungarian perspective, stating, “Considered the closest EU and NATO leader to Russian President Vladimir Putin, he has criticized the Bulgarian tax, which affects one of the last remaining routes for Russian gas into the EU after Moscow’s full-scale invasion of Ukraine in February last year.”
Hungary’s opposition to the Bulgarian tax is not a new development. When the tax was initially introduced, Hungary and Serbia voiced objections, contending that their gas imports were at risk.
Budapest even appealed to Brussels, emphasizing its concerns and opposition to measures impacting its energy supply.
The recent move by GERB and “We Continue the Change” to waive the tax, described as necessary to align with the European approach and prevent any last-minute hindrances to Bulgaria’s Schengen entry, appears to have intensified the diplomatic standoff.
“We are quite close to Schengen. Any options, such as the fee, that trip us up at the last moment, we decided to implement the European approach,” stated GERB leader Boyko Borissov.
As the dispute continues, Bulgaria’s government remains in pursuit of an equivalent of the gas transit tax at the EU level, aiming to exert pressure on member states to reduce their dependence on Russian hydrocarbon imports.
The tax waiver, while aiming to facilitate Bulgaria’s Schengen aspirations, adds a new layer to the intricate web of diplomatic negotiations within the EU, highlighting the delicate balance between energy interests and broader geopolitical considerations.
The outcome of these discussions will undoubtedly shape the future trajectory of Bulgaria’s energy policies and its integration into the Schengen area.
This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members