Bulgaria and Turkey Freeze Gas Contract for 15 Months

Bulgaria and Turkey signed a protocol in Ankara on July 6 to freeze a long-term natural gas agreement between state-owned companies Bulgargaz and Botas for 15 months. The original 13-year deal, signed in January 2023 to reduce reliance on Russian energy, utilized a take-or-pay model that charged Bulgaria approximately $500,000 daily for unused pipeline capacity, resulting in debts of $360 million since July 2024.

Under the new terms negotiated by Rumen Radev and Turkish President Recep Tayyip Erdogan, Bulgaria will no longer pay reservation fees for unused capacity, paying only for the gas it actually utilizes. Radev stated the arrangement lowers regasification and transmission prices, providing a competitive advantage for Bulgaria to become a regional gas trader without further burdening public finances.

Beyond energy, the leaders discussed bilateral trade, regional stability, and border controls to curb illegal migration. President Erdogan also invited Radev to the COP31 climate summit in Antalya this November.

The agreement has sparked domestic political backlash in Bulgaria. Opposition leaders, including Kostadin Kostadinov of the Revival party, have questioned the transparency of the deal and alleged that Turkey may have sought undisclosed concessions regarding electricity transmission and the Black Sea Highway. Additionally, the European Commission is conducting a preliminary investigation to determine if the contract complies with EU competition rules.