SOFIA, BULGARIA — The transit of Russian gas through the TurkStream pipeline to Serbia faces potential suspension as early as January, according to Bulgarian Energy Minister Vladimir Malinov.
The decision hinges on Gazprom’s ability to comply with U.S. sanctions imposed on Gazprombank, which processes critical payments for gas transmission.
Speaking at the “Powers Summit” in Sofia, Malinov stressed that Bulgartransgaz, Bulgaria’s state-owned gas operator, cannot continue operations without receiving December payments.
Historically, these payments have been processed through Gazprombank, which is now under strict U.S. sanctions. Gazprom is expected to clarify its alternative payment method soon, Malinov told journalists, as reported by Mediapool.
A Critical Link in Europe’s Energy Network
The TurkStream pipeline, a significant transit route for Russian natural gas bypassing Ukraine, extends through Bulgaria to Serbia.
Gazprombank holds primary capacity reservations on this route until 2039, making its payments indispensable for maintaining Bulgartransgaz operations. However, the sanctions on Gazprombank have created financial uncertainties, casting doubt on the pipeline’s continued operation.
TurkStream was established after the failure of the “South Stream” project and has since become a vital energy supply route for Southeast Europe.
Any disruption could have far-reaching implications for regional energy security, particularly for Serbia, which relies heavily on Russian gas delivered via this pipeline.
Balancing Social and Energy Policies
Addressing broader energy challenges, Malinov emphasized the need to distinguish between social and energy policies. He argued that defining “energy poverty” should not fall solely under the Ministry of Energy but requires collaboration among government ministries, parliament, and industry stakeholders.
“Progress toward full energy market liberalization demands a coordinated approach,” Malinov stated, advocating for an interdepartmental working group under the Council of Ministers. This group, jointly managed with the National Assembly’s Energy Committee, would focus on legislative measures to ensure market stability, transparency, and predictability.
Malinov also called for Bulgaria to provide a clear timeline to its European partners regarding energy market liberalization. He highlighted the importance of addressing public awareness challenges to ease the transition.
Infrastructure Development in Focus
On the infrastructure front, Malinov underscored the importance of advancing key projects, such as the pumped-storage hydroelectric power plants at Batak and Dospat. These initiatives, crucial for Bulgaria’s energy sector, come with significant financial demands, necessitating public-private partnerships.
“Political support is essential to ensure the successful development of these projects,” Malinov remarked, calling on lawmakers and stakeholders to back these efforts.
Potential Ramifications
The ongoing uncertainty surrounding Gazprom’s payment compliance could disrupt gas supplies to Serbia, affecting regional energy stability. Bulgaria’s decision on the matter, expected before the end of the year, will be closely watched by its European partners and international energy markets.
As Bulgaria navigates these complex challenges, its handling of energy policy, infrastructure development, and international compliance will shape its role as a critical player in Europe’s evolving energy landscape.