Critical Energy Talks Underway as U.S. Financiers Propose Major Investment in Bulgaria’s Gas Hub

Two American financiers, one of whom has ties to former U.S. President Donald Trump’s campaign, have initiated talks with Bulgarian officials over a potential investment in Chiren, Bulgaria’s state-owned underground gas storage facility. According to multiple sources familiar with the discussions, the interest centers on joining a government-backed plan to double the facility’s capacity.

The investors - Florida-based financier Stephen P. Lynch and Fei Wang - are exploring how to enter the project, which is seen as strategically significant due to its role in storing Russian natural gas. The facility, Bulgaria’s only such storage site, has been considered vital for balancing seasonal gas demand and navigating fluctuating market prices. The investors are reportedly backed by Brad Parscale, who managed Trump’s 2016 and 2020 campaigns. The group’s ambition is to transform Bulgaria into a regional energy hub for Eastern Europe, making full use of the expanded storage at Chiren.

Sources say Lynch and Wang are expected in Sofia this week for meetings with senior Bulgarian officials. Their aim is to access updated technical data on Chiren to assess potential participation in the project. The Bulgarian Prime Minister’s office declined to comment on the meetings.

Though early-stage and exploratory in nature, the talks mark a significant development amid ongoing debate in Europe about the future of Russian gas imports. Parscale is said to have had only a limited role so far, but could facilitate connections with American energy firms if the plan progresses further.

Lynch has been a controversial figure in Europe. Earlier this year, during sensitive U.S.–Russia discussions over Ukraine, he attempted to revive Russian gas deliveries via one of the Nord Stream pipelines beneath the Baltic Sea. That initiative was firmly rejected by both German and EU authorities. Now, with the European Commission pushing for a full halt to Russian gas imports after 2027, Lynch’s involvement in the Chiren project is likely to stir further debate.

Bulgaria, as both an EU and NATO member, sits at the crossroads of regional energy politics. The TurkStream pipeline - currently the last active conduit for Russian gas into Eastern Europe - runs through its territory. In spring, Bulgarian authorities approached several U.S. investors with an offer to acquire a stake in the Bulgarian section of TurkStream. While no agreement was reached, the move drew criticism from domestic opposition parties, who claimed it was an attempt to cloak Russian gas infrastructure with an American veneer.

The Chiren expansion could appeal to both camps in the region: those who seek to continue using Russian gas and those aiming to shift to alternative suppliers, including the U.S. According to Martin Vladimirov, an analyst with the Center for the Study of Democracy in Sofia, any new storage capacity will be strategic - but it also requires oversight. He warned that safeguards must be put in place to ensure the facility is not misused to store Russian gas funneled through third countries like Turkey, a scenario that would undermine the EU’s decoupling efforts.

Wang, Lynch’s associate in the Chiren talks, has distanced himself from any past involvement in Lynch’s activities around Nord Stream or TurkStream. He also denied any links to Russian entities.

Meanwhile, European officials remain silent. The European Commission declined to comment on how the potential Chiren expansion fits into its broader strategy for cutting reliance on Russian energy. Bulgarian Energy Minister Zheko Stankov also did not respond to questions about the project.

Lynch’s history with Russian-linked assets runs deep. In the early 2000s, he was part of a consortium that acquired assets from Yukos, the dismantled Russian oil company. More recently, he acquired the Swiss branch of Russia’s Sberbank, after receiving approval from the U.S. Treasury. His 2024 attempt to acquire Nord Stream 2, a company owning a functioning pipeline between Russia and Germany, provoked sharp criticism from European leaders. German Chancellor Friedrich Merz vowed publicly that the pipeline would never be operational, referencing the damage inflicted on three other Nord Stream lines in a 2022 underwater attack.

Chiren itself dates back to the 1970s, when it was developed on top of a depleted gas field. A €285 million expansion project, launched in 2021, was stalled in 2024 after European prosecutors opened an investigation into suspected misuse of EU funds. The European Public Prosecutor’s Office has not provided updates on the case. According to Bulgarian officials, a new tender process for the expansion could be initiated, depending on the outcome of the investigation.