Bulgaria, Türkiye suspend gas deal after Radev-Erdogan talks in Ankara

Prime Minister Rumen Radev arrived in Ankara on Monday for the NATO Summit, which will take place in the Turkish capital on July 7 and 8. During his first day in Ankara, Radev met with Turkish President Recep Tayyip Erdogan. Following the talks, Bulgaria's State-owned gas supplier Bulgargaz and Turkiye's BOTAS signed a protocol suspending their gas supply agreement for 15 months, as requested by Bulgaria.

The Bulgarian delegation includes Economy Minister Alexander Pulev, Energy Minister Iva Petrova, and Transport and Communications Minister Georgi Peev, CE Report quotes BTA.

At the airport, Radev was welcomed by Turkish Minister of Trade Omer Bolat. "We are determined to further strengthen relations between Turkiye and Bulgaria, which are based on strong good-neighbourly ties, mutual trust, and mutual benefits, as well as to bring our relations in all areas to the forefront, with an emphasis on trade, investment, transportation, and energy," Bolat wrote on social media. He assured that joint activities contributing to the stability and prosperity of the region would continue.

Later on Monday, Radev met with Turkish President Erdogan. Turkish news media pointed out that this was Erdogan's first bilateral meeting ahead of the NATO Summit. According to the Turkish Directorate of Communications, the sides discussed the development of bilateral relations and the Turkish community in Bulgaria. Erdogan stated, as quoted by the Directorate on X, that the bilateral ties continue to advance in a multidimensional way, adding that efforts will continue to expand cooperation across a broad range of areas, particularly trade, transportation, the defence industry, and energy. "Further noting that the Turks in Bulgaria strengthen the bond between the two countries, President Erdogan expressed his satisfaction with Bulgaria’s sensitive approach to this issue," the post goes. During the meeting, President Erdogan invited Prime Minister Radev to the COP31 Leaders’ Summit to be hosted by Turkiye.

According to Bulgaria's Government Information Service, Radev and Erdogan identified connectivity as a key priority in bilateral relations. The two leaders underscored the importance of the partnership between the countries for ensuring regional stability and strengthening secure supply chains amid multiple global crises. They also noted the positive trend in bilateral trade, which has reached approximately EUR 9 billion, and discussed new projects of mutual interest. Radev highlighted Bulgaria's ambition to attract more high value-added investment from Turkiye, while Erdogan called on the European Union to implement the EU-Turkiye Customs Union agreement more effectively, saying this would benefit both sides. Radev also expressed his appreciation for the strengthened border controls on the Turkish side of the two countries' shared border.

Following the talks between Radev and Erdogan, Bulgaria's Bulgargaz and Turkiye's BOTAS signed a protocol suspending their gas supply agreement for 15 months. During this period, Bulgaria will pay only for the transmission capacity it actually uses under improved commercial terms, Bulgaria's Government Information Service reported. The two sides also agreed that Bulgaria and Turkiye share a common interest in maximizing the use of the natural gas transmission infrastructure. They will therefore work toward renegotiating the contract between Bulgargaz and BOTAS in line with current market conditions.

The agreement in question was signed on January 3, 2023. Under the contract, the Bulgarian side booked capacity of 106.4GWh/day on the Turkish LNG regasification terminals and agreed to pay for this BGN 1 million (EUR 512,000) daily for a period ending in 2035. At present, Bulgargaz does not import gas under the agreement with BOTAS, and in early May its arrears to the Turkish company approximated BGN 300 million. If the 13-year take-or-pay agreement is rescinded, the Bulgarian company will be liable for close to BGN 3 billion in damages. By a resolution passed on April 19, 2024, the Bulgarian National Assembly assigned then energy minister Vladimir Malinov to take action for re-negotiating the agreement.

Photo: AK Parti