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Bulgaria will not renew its Gazprom contract

21 March 2022
Import-Export
energynomics

Bulgaria will not renew its current gas supply contract with Russian group Gazprom in the context of the Ukrainian war, and will consider alternative supplies and the possibility of joint gas purchases across the European Union to avoid supply problems, said Deputy Prime Minister Assen Vassilev, according to Bloomberg.

The neighboring country meets almost all of its natural gas needs through a 10-year contract with Gazprom, which expires at the end of 2022. For several years, the Sofia authorities have delayed projects to diversify supply sources, including an interconnector with Greece and the expansion of the only gas storage facility. Now the Bulgarian government wants to speed up both projects amid fears that the war in Ukraine could cause disruptions, according to Agerpres.

“Given the current situation, there can be no talks with Gazprom. We have held talks with both Greece and Turkey” to use the existing infrastructure for liquefied gas supplies and increase deliveries from Azerbaijan, with which Bulgaria has a contract, said Assen Vassilev. In addition, the deputy prime minister said that the Sofia government hopes that by the end of the summer there will be a common EU gas procurement mechanism that will allow the EU bloc to negotiate better prices, Vassilev said.

The war in Ukraine has already forced the EU to redefine its energy policy and seek to reduce its dependence on Russia, its main energy supplier, more quickly. Last week, the European Commission unveiled a plan to reduce Russian gas imports by almost a third this year and eliminate all dependence on all fossil fuels supplied by Russia by 2027.

 

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