Bulgaria, Türkiye suspend gas agreement for 15 months after Radev-Erdogan talks

Following talks between Bulgarian Prime Minister Rumen Radev and Turkish President Recep Tayyip Erdogan in Ankara, Bulgaria's state-owned gas supplier Bulgargaz and Türkiye'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, the Bulgarian government's press service said.

The two sides also agreed that Bulgaria and Türkiye 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, according to the statement, CE Report quotes BTA.

During their meeting, Radev and Erdogan identified connectivity as a key priority in bilateral relations. The talks took place ahead of the NATO Summit, which is being hosted in the Turkish capital.

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 Türkiye, while Erdogan called on the European Union to implement the EU–Türkiye 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.

Bulgaria’s Prime Minister is in Ankara to attend the NATO Summit, which is taking place in the Turkish capital on July 7-8. Upon his arrival, he was welcomed at the airport by Turkish Trade Minister Omer Bolat.

Backgrounder

On January 3, 2023, the Bulgarian state-owed natural gas supplier Bulgargaz and Turkish energy company BOTAS signed an interconnection agreement, under which 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: Council of Ministers of Bulgaria