Minister Hristov: "Gazprom" can condemn "Bulgargaz", the risk is to pay millions of dollars for undelivered natural gas

Bulgargaz could be sued by Russian energy giant Gazprom in an arbitration case, risking paying hundreds of millions of dollars. This was stated by the Acting Energy Minister Rosen Hristov during the parliamentary control. On November 14 last year, Gazprom Export announced that an arbitration court in Stockholm had ruled that the Finnish company Gasum must pay it more than 300 million euros for gas supplies after it failed to comply with its obligations under the “take-or-pay” clause. Bulgaria is also in a similar situation.

"We are discussing with lawyers the likelihood that such a claim will be filed against us. At the same time, we are evaluating all possible claims that our country may have against Gazprom Export for undelivered quantities. Such a judicial, in this case arbitration, agreement in itself is extremely difficult and an expensive trial with an unclear outcome. If all the arguments are on one side, there is a 90% chance that side will win.

The risk exists, the material interest is huge for the scale of our country, we are talking about hundreds of millions. If a violation of the law is found, the relevant authorities will seek criminal liability. Whether the citizens will pay the bill, if there is one, that is certain," Minister Rosen Hristov said, quoted by BNR.

In front of journalists on the sidelines, he also commented on the topic of natural gas supplies at the moment and whether the Russian side has a role in them. According to the minister, the gas we will unload in Turkey is the one we would have possibly unloaded in Greece if we had secured more terminals.

"We do not supply Russian or any other gas through this contract. It is entirely for reserving the capacity of terminals and the gas transmission network. From the very beginning, during the time of our management, Bulgargaz began to buy gas exclusively in accordance with the Law on energy through competitive procedures. This is extremely in the national interest and there is no shortage of gas," added Hristov.

Is it possible to renegotiate the Recovery Plan now?

From our first day, we have been working on options on how to renegotiate or achieve the goals in the Recovery and Sustainability Plan (RSP) without closing the power plants, commented the Acting Minister of Energy Rosen Hristov to journalists in the parliament.

He pointed out that the commitment made, the plan signed by the previous government, is extremely threatening not only to the fate of the people who work in the "Maritsa East" complex, but also to the country's energy security and national security.

As long as I manage the ministry, these power plants will not be closed and I will do everything possible to renegotiate these terms, Minister Hristov said. We have ready-made options, we don't need those who created the problem to tell us how to solve it through joint negotiations with Greece and Romania. We have thought of absolutely all the possibilities for a long time, he commented.

The options are for Bulgaria to be fully in line with European directives, i.e. all the commitments that the other countries have accepted, we are also ready to accept them, explained the energy minister. According to him, nowhere else is there a commitment to reduce emissions by 40% based on 2019, this does not exist in any directive at all. I.e. our position will be to be at one with all other countries, Hristov said.

All the comments that they did not undertake to close them, that the power plants could work in the winter and not in the summer - this shows an extreme incompetence, commented Rosen Hristov. According to him, this is not a guest house that we unlock one month and lock it the next month, tens of thousands of people work there around the clock. While on Christmas and New Year you were at home and celebrating, these people there continued to work, noted Hristov.

Since "Continuing the Change" and "Democratic Bulgaria" have not accepted such a commitment, I am very interested in why they had foreseen the reduction of 12 thousand people in the territorial plans, he asked the gathered journalists.

When asked when he expects to start talks with the European Commission, the energy minister said that the REPowerEU program, which provides for an amendment to the national recovery and resilience plans to achieve the priority goal of reducing dependence on natural gas, will soon come into effect and in particular, from one of Russian origin.

When asked if a decision of the parliament is needed to renegotiate the commitments under the plan, Rosen Hristov said that the PVA does not require a decision of the National Assembly, but if there is one, it would be very useful. Being a government with a limited mandate, we always face the question of what will happen when the regular government comes, he pointed out and added that a strong position from the parliamentary groups would give credibility and security to continue this policy, regardless of who forms a government. We have already started the process and I hope to bring it to a successful conclusion, if not - to pass the baton with a flying start to the next regular government, he added.

According to Rosen Hristov, everything can be renegotiated. When you go with arguments, with a clear position, with clear commitments that match the European goals, I think the chance is very good, he said. Our position is to be well prepared, to offer an alternative that is entirely beneficial for the EC, we do not want any total renegotiation and running away from the goals at all, we want to be in harmony with all other European countries, including even being in the leading positions, Hristov pointed out.

We are also finalizing the preparation of a proposal for an energy strategy for Bulgaria for the next 30 years, the minister also announced. He added that they plan to organize a broad public discussion as early as next week, after which the project will be submitted to the Council of Ministers and then to the National Assembly.