The European Commission has raised concerns following Bulgaria’s recent gas supply measures. Cristian Gerhasim reports that the Community Executive is actively engaging with Bulgaria and other affected countries to evaluate the potential ramifications of these newly imposed regulations.
Under this new legislation, Bulgaria has implemented a tax of 20 leva (€10) for each megawatt hour of gas imported from Russia, equivalent to approximately 20% of the reference price for natural gas at the Amsterdam Stock Exchange. The destination of the tax revenues remains within the jurisdiction of Sofia authorities as a national measure.
EU sanctions currently in place do not encompass gas, with a focus on reducing reliance on fossil fuel imports from Russia. Gazprom, the Russian gas group, has abstained from commenting on Bulgaria’s decision, while Hungarian Minister of Foreign Affairs, Peter Szijjarto, has criticized it as “unacceptable” given the impact on gas supplies for Hungary.
The tax, aimed at enforcing sanctions against Russia in response to the Ukraine invasion, is intended to impact network operators and gas importers. However, the broader effect on other market participants remains unclear.
This legislative move comes amid Bulgaria’s evolving relationship with Russia, culminating in a recent decision to provide the Ukrainian army with armored personnel carriers, marking a significant shift in the country’s stance on supplying military equipment to Kyiv.
Bulgaria, as an EU and NATO member, maintains significant cultural and historical ties with Russia, albeit amidst the strained relations resulting from the conflict in Ukraine.
This development illustrates the intricate dynamics at play as Bulgaria navigates its position within the EU and its historical relationship with Russia, underscoring the broader impact of geopolitical shifts on regional energy supply dynamics.
Market Capital Research 