“The contract with the Turkish state energy company “Botas“ has already obligated “Bulgargaz“ with over 600 million leva, which the company cannot repay.“ This was stated by Prime Minister Rosen Zhelyazkov, who participated in a round table on the topic: “Major projects in Bulgarian energy through the prism of geopolitics, national security and diplomacy“, organized by the Institute for Strategies and Analyses. This was reported by the government's press center.
The Prime Minister emphasized that the issue should not be reduced to political polemics alone, but requires a professional approach and expert decisions. “We have put the future of “Bulgargaz“ on one side of the scales, and on the other - the way the country's economy functions through political decisions. It is necessary to seek sustainable solutions with long-term logic, not short-term political moves“, the Prime Minister also said.
Zhelyazkov pointed out that the problem with the contract with “Botas“ is not only financial, but also raises questions of principle. “This contract raises the question of how long-term decisions can be made by a government with a very short mandate - for 13 years to come. In its potential, with the overall escalation, the contract would cost the state about 6 billion leva. When considering its debt potential, the question must be asked what its revenue potential is. The main question is to what extent the state interest is protected – not only at the moment, but throughout the entire life cycle of the contract“, Zhelyazkov also shared.
The Prime Minister pointed out that the contract was too heavily loaded with political context and this prevented specific and complex decisions from being made for its implementation, amendment or termination. “We cannot ignore the problems in the energy sector, which are the result of incorrect decisions and become part of the political debate. The issue of “Botaş“ is exactly that – it must be resolved professionally, in view of the state interest and the sustainability of the energy sector.“
According to the Prime Minister, the right policies are the basis for the sustainable development of the sector and a prerequisite for an attractive investment environment. Rosen Zhelyazkov was categorical that energy is no longer just a resource, but the new currency of global politics: “The main question is to what extent the state interest is protected throughout the entire life cycle of long-term contracts.“
In his speech, Rosen Zhelyazkov also emphasized the need for consistent policies that create a predictable environment for investors. “The development of new energy corridors, the development of nuclear potential, investments, but also reasonable investment in renewable sources and balancing capacities are ambitious projects. They can be successfully implemented only when there is professional and social consensus. The most important thing for investors is stability, predictability and economic logic in the long term“, Zhelyazkov emphasized.