site.btaEuropean Commission Approves EUR 120 Mln State Aid to Bulgargaz in Context of War in Ukraine

The European Commission (EC) has approved a EUR 120 million Bulgarian measure to support Bulgargaz EAD, the public supplier of natural gas in Bulgaria, in the context of Russia’s invasion of Ukraine. The aid was approved under the State Aid Temporary Crisis and Transition Framework. 

Under the measure, the aid will take form of guarantees on up to EUR 120 million of new loans granted to Bulgargaz. The purpose of the measure is to remedy the liquidity shortage faced by Bulgargaz caused by Russia’s war against Ukraine.

The EC has found that the Bulgarian measure is in line with the conditions set out in the Temporary Crisis and Transition Framework and the applicable cumulation rules are respected. In particular, the guarantees are provided on new loans; the cumulated loan amount covered by the guarantees under the measure does not exceed the company’s liquidity needs for the following six months; the State may guarantee up to 90% of the loan principal with maximum maturities of up to six years; and the guarantees will be granted no later than December 31, 2023.

The EC concluded that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State.