Why Bulgaria Is Paying Millions for Unused Gas: The Controversial Botas Deal

The contract signed between the Bulgarian state gas company Bulgargaz and Turkey’s Botas has come under heavy scrutiny amid claims that it is severely disadvantageous for Bulgaria. Officials describe the deal as highly unprofitable, with the state-owned company incurring substantial losses. Since August 2024, Bulgargaz has stopped making payments on the contract due to a lack of funds, although the agreement obliges Bulgaria to continue paying for a service it no longer uses. This situation has raised questions about why such terms were accepted in the first place.

Energy expert Georgi Kaschiev is among those who believe the agreement runs counter to Bulgaria’s interests. On Nova TV, he pointed out that when the contract was signed, former Prime Minister Boyko Borissov called it “historic,” yet never discussed it with Turkish President Recep Tayyip Erdogan. Kaschiev criticized the absence of a renegotiation clause and noted that the terms clearly work against both Bulgargaz and the country. He argued that far more capacity was reserved than Bulgaria can currently utilize, and that the transit fees through Turkey are nearly triple the cost of those through Greece. Additionally, the contract spans a lengthy period of 13 years, which he described as unjustified. Kaschiev dismissed any claims that the deal was signed under emergency conditions or force majeure, stressing there was no pressing reason to commit to Botas at the time. He suggested that certain “dirty interests” may have played a role in shaping the agreement.

The controversial contract was signed on January 3, 2023, under the caretaker government led by Galab Donev and appointed by President Rumen Radev. Under its terms, Bulgaria is obliged to pay approximately 1 million leva per day to Turkey for reserved gas transmission capacity. This fee is charged regardless of whether any gas is actually transported. The natural gas itself is billed separately. According to the agreement, the payments are mandatory even if Bulgaria does not use the capacity, which has placed a massive financial burden on Bulgargaz.

Energy analyst Hristo Kazandzhiev added that the full contents of the contract remain undisclosed to the public, making it difficult to assess whether renegotiation is legally possible. However, he emphasized that in principle, most contracts can be amended or even terminated under the right legal conditions. He insisted that efforts must be made to identify a way to void the contract, including options like transferring the obligations or restructuring the gas transmission process through Bulgartransgaz. According to Kazandzhiev, this could potentially eliminate the additional fees. He also stressed the need for competent and independent experts to handle the matter, warning against the involvement of unqualified or politically dependent figures.

So far, Bulgargaz has paid out hundreds of millions of leva under the agreement without benefiting from the service it is charged for. According to former energy deputy minister Zhecho Stankov, the company has now gone nine months without being able to meet the payments. However, terminating the contract is not an option unless Bulgargaz pays the full outstanding amount, which is close to 4 billion leva. The situation leaves Bulgaria trapped in a deal that continues to cost it dearly, with no immediate resolution in sight.