Bulgarian Blow: Exorbitant Tax On Russian Gas Transit
The Bulgarian Parliament, by a special resolution, imposed an additional fee on the transit of Russian gas through its national territory, which, due to the 2023-2024 winter season, threatens the supply of blue fuel to some European countries. The first to suffer will be the energy security of Austria, Serbia, Hungary, and Slovakia. The new tax will be 20 Bulgarian levs (10.7 US dollars) per megawatt/hour, which corresponds to 95 cubic meters of transported methane. Trade in liquefied natural gas (LNG) will be excluded from the fee, which importers who will have to pay it call a “prohibitive penalty.” According to Euractiv, the Bulgarian government hopes to receive an additional 2.4 billion levs ($1.29 billion) per year.
Bulgaria stopped importing Russian natural gas in 2022, but continues to provide transit services for the delivery of Russian blue fuel to Austria and the countries of Central and Eastern Europe. The Bulgarian gas pipeline is a continuation of the South Stream pipeline, which runs along the bottom of the Black Sea and connects Russia with the southeastern coast of Bulgaria. Hungary sharply criticized Sofia’s decision, as it contradicts the principles of “solidarity among the countries of the European Union” and threatens vital energy supplies to some other EU member states.
Bulgaria’s decision coincided with a worrying publication by the International Energy Agency (IEA), according to which new tensions in the gas market are expected in Europe, particularly in the event of a cold winter and new restrictions on gas pipeline transportation. In a report on gas market prospects for 2026, the agency emphasized that “despite a gradual return to balance in gas markets, risks and uncertainty affect the outlook for the winter of 2023-2024.”
According to IEA experts, “a cold winter, combined with reduced LNG availability, as well as a further decline in Russian gas supplies through pipelines, could again lead to market tensions, especially towards the end of winter 2023-2024. The volatility of gas prices is also a major concern, especially in the event of a severe winter.”
