The Bulgarian natural gas company Bulgargaz has suspended payments of $1 million from the Bulgarian budget to BOTAS, effective July, according to Kaloyan Metodiev, an independent Member of Parliament (MP) in Bulgaria’s 50th Parliament.
He stated that the contract with BOTAS goes against national interests and that they will likely pursue arbitration.
Concerns over national interests
Metodiev made these comments in response to statements in Bulgarian media, emphasizing that Minister Vladimir Malinov’s remarks suggest the contract with BOTAS does not align with Bulgaria’s national interests, which opens the door for potential arbitration.
He noted Bulgargaz ceased payments in July because it was no longer feasible to transfer $1 million daily from the Bulgarian budget to BOTAS’s accounts.
Legal options for protection
The state gas supplier, Bulgargaz, hired a legal advisor to explore various options to protect Bulgarian interests under the contract signed with Turkish BOTAS. This contract reserves an annual capacity of 1.85 billion cubic meters until 2036 for a daily fee of approximately $500,000. A meeting between the two companies was scheduled for Oct. 15 in Istanbul to discuss the contract, but Bulgargaz had already stopped payments in July.
The situation became clearer following Energy Minister Vladimir Malinov’s response to questions on Oct. 11. Metodiev expressed concerns about the absence of a termination clause in the billion-dollar contract, questioning the decision to seek legal advice after only two years of payments.
Call for accountability
He called on President Rumen Radev, Acting Prime Minister Galab Donev, and the head of Bulgargaz to take responsibility for the situation.
Metodiev further noted that while the Turkish company continues to send invoices, Bulgargaz has not made any payments.
He stated that the Turkish side cannot be blamed in this situation, emphasizing that they were not forced into this agreement and that the real issue lies within their ranks.