site.btaUPDATED Minister Assen Vassilev Comments on Minimum Wage, Energy Prices

There will be no increase in the minimum wage in July, it is not reasonable to raise it twice in one year, said by the Deputy Prime Minister for EU Funds and Minister of Finance Assen Vassilev in a Nova TV interview.

From next year, the minimum wage will be increased according to a formula in order to have predictability and clarity. Asked whether there will be a non-taxable income from July, Minister Vassilev said there won't be as a clear commitment on that matter has been made by the government.

Heating will certainly be more expensive, noted Vassilev. Before the suspension of Russian gas in late April, compared to March-July last year, heating prices had increased fourfold compared to March-July last year, he said adding that the price of heating would certainly not increase fourfold now, but probably up to 20%.

Minister Vassilev noted that there is no reason for water utility prices to increase. If they do, that would not be related to energy sources, but to the management of the water sector.

Russian oil, gas

Asked when Bulgaria will stop importing Russian oil, Vassilev said that this would happen when it is technically possible for Lukoil to use other oil, which the company said it would be up to 12-18 months from now, as a well as if a concerted European decision is made and the whole of Europe stops imports. “We have made it clear that if there are exceptions [to the anticipated ban on purchase of Russian oil], we want to be among them," he explained noting that in case exceptions are allowed and Bulgaria is not among them, it will veto the ban.

Vassilev said that there is no information of any EU countries that would pay under Gazprom's new rules. He noted that a return to Gazprom for Bulgaria is unlikely. “The contract in any case expires at the end of the year with a supplier that uses gas for purely political purposes, on the one hand, and on the other - although we have met all the conditions, decides to change them unilaterally," he explained.

The gas imported from Azerbaijan is about three times cheaper than the Russian gas, the Finance Minister added. “As far as I know, the agreed US gas for June-July also comes at a much lower price than from Gazprom,” he said.

Sofia - Skopje

Asked whether Bulgaria would give the green light to the Republic of North Macedonia and lift the veto for EU accession talks within three weeks, Minister Vassilev said that he had not heard of such discussions and that on Friday the Prime Minister called for convening the Consultative Council on National Security  so that all doubts to be cleared.

Inflation

When asked whether the measures taken will further increase inflation, Minister Vassilev said that all these measures are calculated within the existing budget deficit. It is very difficult to forecast average inflation by the end of the year, but the Minister estimated between 10% and 11%. The reason for the difficult forecast is the uncertainty of what will happen to food inflation in September, he explained, assuring that this country has enough grain, but "our price is related to world prices."

Vassilev also said that the government is working for Bulgaria's entry into the Eurozone from January 1, 2024.