Kommersant daily: Bulgaria will give up the long-term contracts with Gazprom

“After Croatia, Gazprom is about to lose another customer in Europe - Bulgaria,” reported the Russian Kommersant daily yesterday. It quoted Minister of Economy and Energy Traicho Traikov, who said that the Bulgarian Government intended to give up the long-term contracts with Gazprom over the next 2-3 years. Bulgaria wants to reduce the purchases of Russian natural gas from the current 5 billion to 500 million cu m per annum. In order to achieve this goal, they rely on their own production in the region of Lovech, the development of a shale gas- field near the town of Novi Pazar and the purchase of gas from Turkey.

Gazprom executives failed to comment on the statements of Traikov. “The Bulgarian authorities have first to develop competition on the domestic market, otherwise prices will remain high,” stated Mikhail Korchyomki, General Director of East European Gas Analysis consulting company.

The European Commission (EC) requested an explanation from the Bulgarian Government whether it intended to provide State guarantees about a possible loan for the construction of Belene Nuclear Power Plant (NPP). A message from the office of MEP Nadezhda Neynsky, cited by Livenews.Bg, revealed, however, that the EC had not yet received an answer. Neynsky has referred the issue to Joaquin Almunia, European Commissioner for Competition.

The Cabinet of PM Borissov has always maintained that State guarantees for Belene NPP will not be granted. However, a working group, which includes experts from the National Electric Company and Atomstroyexport, has been set up currently in charge of discussing the conditions for a Russian export credit. The Russians have always wanted to receive a share in the project against the credit." The Commission has not been informed about the future plans for the funding of the Belene NPP project yet, that is why a conclusion for a future use of State aid cannot be drawn at this point, " stated Joaquin Almunia.

Under EU rules, the use of State aid for financing the construction of any energy facilities is not acceptable.

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