site.btaPM: Bulgaria Can Rely on Azeri Gas Supply from July 1

During Question Time in Parliament Friday, Prime Minister Kiril Petkov said that Bulgaria can rely on Azeri natural gas supply from as early as July 1. The Nea Mesimvria gas interconnector in Greece provides Bulgaria with an ample opportunity to import Azeri gas, he added.

Petkov and Deputy Prime Minister and Finance Minister Assen Vassilev took questions on current economic issues from MPs.

Bulgaria is struggling to find substitutes for Russian energy supplies after gas was cut off on April 26 following Bulgaria's refusal to pay for them in rubles, and oil is expected to stop coming as part of a new package of EU sanctions.

Vassilev said that when the new sanctions enters into force, Bulgaria will be among the excepted countries in the EU from the embargo on Russian oil. In his words, this depends on the European Commission, and, currently, he has no information on when it will happen.

“We have clearly stated that Bulgaria must be included in the list of exceptions to support it [the sixth package of sanctions against Russia],” Vassilev said.

He was adamant that the Bulgarian economy can do without oil for six months, if Russian oil supplies are suspended and the Bosporus is closed and no oil tanker can reach Bulgaria. He said: "We can manage for six months, if the Bosporus is closed and Russian oil cutoff. That is the worst-case scenario we can imagine. It would mean that no ship can reach Rossenets, which is the main oil port of this country. There are cushions in the budget that can be used for a prompt reaction in such a scenario. The Bulgarian interest, as I have repeatedly said, is that we get a derogation from oil sanctions while gradually diversifying our oil suppliers, building highways, railways and oil pipelines to link Alexandroupolis, Bourgas, Varna and Konstanta."

Vassilev also dismissed suggestions by analyst and politicians that the LUKOil Neftochim Burgas oil refinary should be  nationalized and explained that it is impossible because, legally, it is not Russian. "It would plunge Bulgaria into a huge international scandal because that would be expropriation of shares of a private company which is not in the sanctions list. LUKOil has had things perfectly arranged for them and they are Swiss-owned, not Russian," said the Finance Minister.

Surge in production and export

Vassilev said that the growth of production and export in Bulgaria exceeds 20%, adding that exports in March were the largest ever recorded in Bulgaria’s history. In his words, this is because the Bulgarian companies and their workers are now well organized. The state aims to keep the energy prices at bay to improve company competitiveness, Vassilev said. 

The Finance Minister said that the government is currently discussing additional measures for combating inflation which are to be announced next week. The measures will seek to reduce the burden of soaring prices on businesses and people, in particular poor households.

Answering a question about the forthcoming introduction of the euro in Bulgaria, Vassilev explained that the euro will be introduced at the current exchange rate to the Bulgarian lev, and the target date for the introduction is January 1, 2024.