site.btaBulgargaz Reacts to Claims about Using Gas Supply Intermediaries

In a position sent to the media Monday, the State-owned company Bulgargaz EAD responds to recent claims that it uses intermediaries following the discontinuation of Russian gas supplies to Bulgaria as of April 27. In the current situation, Bulgargaz provides alternative quantities of natural gas through supply companies, like Gazprom Export, the position reads. Usually, producers are separate companies from suppliers, Bulgargaz specifies.

The quantities are provided by well-established companies operating not only on the Bulgarian and the neighbouring gas markets, with a proven good trade reputation and a broad portfolio, the position reads further. 

Bulgargaz says that regarding recent speculations about the prices at which these deals are made, it should be taken into view that even if Bulgaria had accepted the Russian side's demand for payments for gas in rubles, that price would most probably have undergone unpredictable changes given the lack of clarity on the exchange rate and of an opportunity for the Bulgarian side to exercise control in the conversion process as set in Gazprom Export's proposal.

To limit the consequences of Gazrpom Export's actions, Bulgargaz has undertaken all necessary actions that do not go against Bulgarian legislation to ensure the integrity of the country's gas transmission system and uninterrupted gas supplies to Bulgarian household and industrial users, Bulgargaz says. 

Earlier on Monday, opposition GERB party leader and former prime minister Boyko Borissov told a news briefing that the Government is concealing the fact that the State will again buy Russian gas but through intermediaries which will increase its price significantly. In his words, the incumbent are serving Russian President Vladimir Putin at the expense of the Bulgarian consumer. He referred to media reports according to which MET Energy is a front for Gazprom and has an agreement with the Russian monopolist to transit its natural gas. A day earlier, Borissov commented on the discontinued Russian gas supplies for Bulgaria by calling the members of the cabinet “brazen” and “hustlers” and accusing the media of not wanting to name the intermediary that supplies the country with natural gas.

On Sunday, Vice President Iliana Iotova told Nova TV that if it turns out the decision to not pay for Russian gas supplies to Bulgaria in rubles is a way to import other gas through an offshore company and that has been agreed upon in advance, whoever took the decision should resign. In her words, it would be disgraceful if proven that the interests of 25,000 Bulgarian companies dependent on gas supplies are being ignored because of questionable commissions. 

It is up to the Executive to decide whether to renew the negotiations with Gazprom, Iotova went on to say. She called unacceptable the Energy Minister going to the Extraordinary Transport, Telecommunications and Energy Council meeting in Brussels on Monday without the coalition council having met to discuss the Bulgarian position, as there are opposing opinions on the matter. In her words, there are two radically different opinions: Economy Minister Kornelia Ninova wants the negotiations with Gazprom renewed, while Finance Minister Assen Vassilev is in favour of alternative gas supplies.