Bulgaria's PM Warns: Botas Deal Threatens Bulgargaz and National Energy Stability

Prime Minister Rosen Zhelyazkov described the contract with the Turkish state energy company Botas as a significant problem for Bulgaria’s energy sector, highlighting its long-term financial impact on Bulgargaz. According to Zhelyazkov, the agreement has already committed Bulgargaz to over 600 million leva (€306 million) that the company is unable to repay. Over the full 13-year period, the contract would cost the state more than six billion leva (€3.06 billion). Speaking at a strategic energy forum in Sofia, the Prime Minister stressed the need for public debate and solutions to revise the contract, emphasizing the balance between Bulgargaz’s financial stability and the broader functioning of the national economy under political decisions.

The forum brought together key figures, including Vice President Iliana Yotova, and the energy and finance ministers, to discuss the country’s energy security, sustainable development, and strategic projects. Participants highlighted major elements of Bulgaria’s energy mix, with nuclear power providing about 50% of electricity production. Zhelyazkov reiterated the strategic importance of large-scale projects such as units 7 and 8 of the Kozloduy Nuclear Power Plant, noting their potential to accelerate economic development. Infrastructure initiatives, including interconnectors with Greece, Serbia, and Romania, LNG terminals, renewable energy parks, and smart grids, were also underscored as critical for the country’s energy independence and regional influence in Southeastern Europe.

Focusing again on the Botas contract, Zhelyazkov described it as an incorrect decision that places Bulgargaz in a vulnerable position, with the possibility of insolvency. He framed the issue as a structural problem for the energy sector, highlighting the tension between the company’s future and political-economic decision-making. Vice President Yotova stressed the need for Bulgaria to position itself not as a peripheral player, but as an active participant in European energy decisions. She also highlighted the electricity demands of major projects, such as the European Commission-selected gigafactory, which requires significant energy resources.

Yotova further emphasized the importance of planning Bulgaria’s energy system for 2050, addressing the energy mix and dominant sources, and questioned why discussions around thermal power plants remain neglected. She pointed out that, to date, the National Assembly has not adopted a strategic vision for sustainable electricity development, leaving a gap in long-term planning and policy guidance. The forum thus framed both immediate contractual challenges and broader structural considerations for Bulgaria’s energy future.