A project to include two private arms companies, including the one connected to the gunpowder factory near Smyadovo "Karash Invest" EOOD, in the list of strategic sites for national security has been submitted again for public discussion, BGNES reports. The company is owned by Hristo Gebrev, son of arms dealer Emilian Gebrev, and the change proposed by the Ministry of Economy aims at enhanced protection by the National Security Agency against terrorism and cyberattacks against the backdrop of the ammunition shortage in Europe.
The proposal envisages "Karash Invest" and "Aheloy OPM" to be added to the “Economy“ section of the state strategic list. The reasons emphasize the key importance of the production, trade and storage of defense products for the planning of civilian resources.
Inclusion on the list itself does not constitute an automatic permit for the construction of the plant near the town of Shumen. However, the statute provides for additional security measures, which include direct monitoring, protection and control by the State Agency “National Security“, as well as higher requirements for physical security and access to production facilities.
The two companies were also proposed for inclusion in the strategic list in January 2024. At that time, the project went through a public discussion, but the procedure did not reach final adoption.
The case caused political tension a year later, after the then Minister of Economy Bogdan Bogdanov announced that the government had been pressured to stop the process. According to former Defense Minister Boyko Noev, the reason for the project being blocked is related to Delyan Peevski, although there is no public confirmation of these words. According to information from that period, SANS initially gave a positive opinion on the sites, but later withdrew it, which led to the cancellation of the procedure.
The investment intention of “Karash Invest“ is aimed at building a new gunpowder production capacity in the Smyadovo region. As early as 2024, the company acquired a local enterprise, and procedures for reconstruction and expansion of capacity are already underway for the project.
The project has acquired particular strategic importance due to the shortage of gunpowder and other key components in Europe after the start of the war in Ukraine. Gunpowder is critically needed for the production of artillery ammunition, and increasing production capacity has been identified as a top priority for the European defense industry. This forces the countries of the continent to seek quick opportunities to reduce dependence on external suppliers.
In parallel with the private initiative, in October 2025, the Bulgarian state and the German concern “Rheinmetall“ signed a strategic agreement. It envisages the construction of a gunpowder and ammunition plant through a joint venture between the German company and VMZ - Sopot.
According to official data, the investment amounts to nearly 1 billion euros, and the production will include gunpowder, 155-mm artillery shells and modular charging systems, with around 1,000 jobs expected to be created.
Thus, within a few years, Bulgaria finds itself facing two large-scale gunpowder production projects. If the new decree is adopted, “Karash Invest“ will fall under the special regime for strategic infrastructure, marking a second attempt to acquire the status in an already completely changed European defense reality.