site.btaEuropean Commission Approves EUR 400 Mln Bulgarian State Aid Measure to Support Bulgargaz EAD

The European Commission (EC) Tuesday approved some EUR 400 million (BGN 800 million) Bulgarian State aid measure to support the country’s public supplier of natural gas, Bulgargaz EAD, in the context of Russia's war against Ukraine.

The measure was approved under the State aid Temporary Crisis Framework, adopted by the EC on March 23, 2022. Bulgargaz EAD is the exclusive public supplier of natural gas in Bulgaria, indirectly wholly owned by the Bulgarian State, an EC’s press release reads. 

Due to Russia's suspension of Bulgargaz EAD's long-term contract with Gazprom Export OOO, which covered 90% of the quantities of natural gas delivered by Bulgargaz EAD to customers, this beneficiary faced unusual liquidity needs in order to secure its supply of natural gas in a context marked by the surge in gas prices on the European energy markets.

Under this measure, the aid takes the form of a loan with subsidised interest rates granted by the Bulgarian Energy Ministry.

The EC found that the Bulgarian measure is in line with the conditions set out in the Temporary Crisis Framework.