Bulgaria gets reduced gas price from Gazprom before electionsReading Time: < 1 minute
Ahead of parliamentary and presidential elections in Bulgaria, Russian gas giant Gazprom has gone against market trends, giving Bulgaria’s state-run Bulgargaz a discount instead of an expected increase in the price the Bulgarian state-run gas company pays to purchase natural gas. Bulgargaz will receive Gazprom’s wholesale price discount instead of an anticipated 32% increase. As a result, in November the gas price for Bulgaria is EUR 46.5/MWh, which is almost half of typical European gas hub tariffs.
The gas price reduction comes at a peculiar time – just ahead of elections in Bulgaria, where a caretaker government and president Rumen Radev have good chances for reelection. However, former prime minister Boyko Borissov and his GERB party have been repeatedly criticizing the caretaker government for its handling of the energy crisis.
Analysts warn that Russia is aiming to sign a new long-term gas agreement with Sofia, following the example of a gas agreement recently inked with Hungary. Currently, Gazprom supplies about 70% of the gas supplies in Bulgaria.