Tsvetelina Vatovska to FAKTI: The cruel bureaucracy of state institutions is crushing small and medium-sized businesses!

In the editorial office of FAKTI received a signal from Tsvetelina Vatovska, who is the manager of the company “Investstroy” EOOD, which has purchased a mobile installation for the processing of essential oil crops. It all started back in 2016. The company submitted an application for support under the Rural Development Program for the period 2014-2020 under Sub-measure 4.2. “Investments in processing/marketing of agricultural products” from measure 4. “Investments in tangible assets”. The application meets all legal requirements. Then the company purchases a mobile installation for processing essential oil crops, the installation is located in the village of Galabets, Pomorie municipality. All necessary documents of the State Fund “Agriculture“, required for financing the project, have been submitted, and all instructions given by the administrative authority have been fulfilled. But… To date, the State Fund “Agriculture“ has not exercised its legal competence to conclude the grant financing agreement, although there are two court decisions – of the Burgas Administrative Court and the Supreme Administrative Court. And so the saga has been going on for 10 years. Why is it so… Tsvetelina Vatovska speaks to FACTI.

- Ms. Vatovska, will there be an end to your saga with the State Fund “Agriculture“ for the financing of a mobile installation for the processing of essential oil crops?
- As a lawyer and entrepreneur who has been waging an unequal battle with the state for 10 years, I believe that the cruel bureaucracy of state institutions is crushing small and medium-sized businesses! In my situation are a number of agricultural producers who do not have the resources and strength to fight, and accordingly are deprived, just like me, of access to financing. They simply have no chance in this unequal battle. A person against the state is alone and this bureaucratic pressure happens to those of us who do not have a strong lobby and are accordingly subjected to bureaucratic and financial pressure.
In my opinion, this is also a type of psychological pressure for anyone who has not given money and has not found connections, to be forced to give up financing. On the other hand, of course, the lack of effective legal mechanisms for the implementation of court decisions further contributes to state institutions - in this case the State Fund "Agriculture", to misuse the power granted to them by law, and thus practically citizens in their own country remain without protection and rights!

- It all started in 2016 and despite the court decisions of the Burgas Administrative Court and the Supreme Administrative Court, there is no effect for you?
- This is a very long, exhausting and rather discouraging saga that lasted 10 years.

The company I represent applied in 2015 under the program, having made the investment for the purchase of a mobile installation for the processing of essential oil crops within the meaning of Art. 30, para. 1, p. 2 of the Regulation back in 2016.


This investment is located in a rural area, namely in the village of Galabets, Pomorie Municipality. All necessary documents of the State Fund “Agriculture“, required for the financing of the project, have been submitted, and all instructions given by the administrative body have been implemented, but to date the State Fund “Agriculture“ is inactive and has not exercised its legal competence to conclude a contract for grant financing.
By Order No. 03-RD/3716 of September 17, 2018 of the Deputy Executive Director of the State Fund "Agriculture" we were denied funding for support under application No. ID 02/04/2/0/00298 of December 17, 2015 of the company I represented, on the grounds that the investment for which we applied is not mobile. We appealed this refusal to the court. With the entry into force of Decision No. 228 of February 13, 2019 of the Burgas Administrative Court, in adm. case No. 2856 under the inventory for 2018 of the BAC, Order No. 03-RD/3716 of September 17, 2018 was canceled. of the Deputy Executive Director of the State Fund "Agriculture", which refused to finance the project. The court orders the administrative body to take action to secure financing for the project. Although the court failed to set a deadline for this, this deadline should be reasonable. Court decision No. 17652 of 23.12.2019 of the Supreme Administrative Court - fourth department, on adm. case No. 4815 in the inventory of the Supreme Administrative Court for 2019 entered into force on 23.12.2019, whereby the unlawful ORDER to refuse financing of the investment for a mobile installation was annulled. After the cited court decision, the administrative body should have taken action to provide the support or refused within a reasonable time. In the above-mentioned court proceedings, the State Fund "Agriculture" was a party and therefore is fully aware of the court's motives.
The Burgas Administrative Court and the Supreme Administrative Court in their court decisions consider our request for financing of the installation purchased by the company and state in their reasoning that our request meets all legal requirements. By letter no. 01-2600/ 4733-12 dated 23.12.2020, we made a request to the State Fund "Agriculture" to exercise its competence to provide financing on the application submitted by us and to implement the court decision of the Supreme Administrative Court. I only mention that the court decision of the Supreme Administrative Court, which entered into force on 23.12.2019, annuls the first unlawful order to refuse financing. Thus, the court obliges the State Fund "Agriculture" to take action to provide financial assistance to the company. Instead of implementing the court's decision, the administrative body is making another refusal to provide funding through its inaction for 5 years.

- Are they waiting for you to give up?
- Yes, it is most likely a well-established way for the administration to make candidates who have not gone through the “party treasury“ give up.

The case with my company is not an isolated problem. It is a symptom of something much deeper - a serious decline in our society.

We live in a system in which institutions not only do not protect citizens, but actively discourage them from seeking their rights. I believe that the goal of this bureaucracy is clear - to exhaust and refuse those who are trying to fight for what is legally theirs. This is not just an administrative obstacle. This is a refusal of democracy. When citizens do not have effective mechanisms for protection and have to fight for years in court battles to get what is legally theirs, we lose the basic principle of a democratic state - order and justice. If this problem is not addressed, it will lead to ever deeper disappointment and apathy in society.

What we observe with my company is how such actions ruin entire sectors of our economy.

The production of rose oil, which is a symbol of Bulgaria, suffers from the lack of adequate support and bureaucratic obstacles. People who grow roses are left alone in disasters, without compensation or support. The same happens with fruit growing - another vital sector for our agriculture. Agriculture should be a pillar of the economy, but instead we see how, purposefully or not, the system destroys it. Without clear rules, without security and support, many producers give up or lose motivation to fight. This is a clear signal that we need a change – not only in policies, but also in the way institutions communicate and support citizens.

- The legal dispute continues even now, because you are appealing another refusal. How much longer will it be like this?
- In reality, I myself do not know how much longer this battle with the state will continue. On 25.11.2024, almost 9 years after submitting our initial application, we received a second Order for Refusal of Financing No. 03PD/6135 dated 25.11.2024 from Iva Ivanova, Executive Director of the State Fund. The reason for the refusal was that our company had tax liabilities to the National Revenue Agency (NRA) 4 years ago. We appealed this refusal again and the Burgas Administrative Court soon - on 25.05.2025, again overturned the unlawful refusal with a court decision. It is likely that the State Fund "Agriculture" will appeal to the Supreme Administrative Court and it will take at least another 1 or 2 years until we have an effective court decision.
With the lack of an effective mechanism for enforcing court decisions, we can once again write letters that are fruitless, and so on, until the state manages to bankrupt our company or refuse us.

- Can anyone in Bulgaria force the State Fund for Agriculture to fulfill its powers?
- In my opinion, only public pressure and the unification of society around improving the legal order in the country to enforce court decisions can lead to some change! Legislative changes and transparency are needed on where the money from European programs goes. It is necessary to introduce a unified register for the issued refusals and court decisions, sanctioning the administrative body in case of non-compliance, because:
- there is no enforcement mechanism - there is no legal way to force the State Fund for Agriculture to to fulfill its obligation
- hypothesis of systematicity - we are obviously part of a larger problem that could easily be confirmed by investigating other similar cases
- corruption and lobbying in the distribution of subsidies, which we all know about, but we put up with.
This problem affects not only our company, but also all beneficiaries who rely on the correct work of the State Fund "Agriculture". If there is no mechanism for the implementation of court decisions and if corruption pressure continues to be the norm, this undermines trust in state institutions, European programs and severely affects sectors such as essential oils.

- You work in a very interesting industry, but what do you face in our country. How is the essential oil industry developing?
- The sector is in crisis, with many distilleries on the verge of bankruptcy due to the lack of support, adequate measures and a clear strategy from the state. Lavender essential oil has the lowest price in years. Currently, the price for 1 liter of oil is 30 leva, which is a price that is below cost.

Producers are plowing up lavender, and distilleries are closing their doors, while banks are using bailiffs to describe their equipment, which will probably go to scrap.

In this situation, foreign investors are taking advantage of the situation and buying up our rose plantations and essential oils, which are the fruit of people's labor, for next to nothing. The moment is critical for the industry and will lead to the destruction of another sector of the economy and agriculture, which is key for Bulgaria and we have traditions in it.

- Is there a state strategy and vision for the development of the sector, which is emblematic for Bulgaria - especially lavender and rose oil?
- The state not only has no vision, but even no goal and defined direction for where this industry is going. The essential oil sector currently represents a ship that has no captain and crew. Even if we start its engine and it sets off from the port, it will most likely sink.
The essential oil industry is not only part of our economy, but also a symbol of our national identity. Delay or lack of action by the state leads to irreversible consequences for hundreds of enterprises and thousands of jobs, as well as to a collapse of the image of Bulgarian products on the international market. The state does not have any plan or strategy for this industry. It is left to the mercy of fate. While France values its production and for it this is a national interest, in Bulgaria the situation is as follows:
- the state does not consider it a priority sector, does not subsidize it sufficiently and has no goal, direction and plan for its development
- banks refuse to finance enterprises like ours, while there are obligations to the state, and most processing enterprises have obligations
- the state refuses to pay the subsidies due or does not provide them at all for this sector, which is sensitive
- as a result, small and medium-sized enterprises - like ours, are forced to seek alternatives from moneylenders or foreign investors
However, these decisions are disastrous. Their consequences include negotiating prices per liter of essential oil at cost or even below cost. This industry is particularly sensitive to such crisis situations. Delays or refusals to pay subsidies lead to:
- financial losses for producers
- closure of production facilities and job losses
- sustained devaluation of Bulgarian production on the international market
- gradual loss of national control over a strategically important sector
The sector is not only Bulgaria's calling card worldwide, but also the main source of income for thousands of families. If things do not change, roses and lavender in Bulgaria will only be seen on postcards.

- How do you deal with the workforce?
- The essential oil industry has its own specifics, as it is seasonal and requires intensive work at certain periods. This is how we approach this issue. It is about seasonal employment and advance planning. At the beginning of the season, we organize the hiring of workers, focusing on attracting labor from local communities, but this is quite difficult because we are in the Black Sea region and have a serious shortage of people. There is a focus on automation, because we invest in modern equipment that facilitates the processing process and reduces heavy physical labor. This allows us to be more efficient and competitive. We believe that satisfied employees are the key to a successful business. That is why we strive for long-term relationships with our workers through fair remuneration and respectful treatment. All these issues require financial planning and, again, support from the state.

- What is the market for essential oils in our country and how do you deal with the challenges?
- Bulgaria is a leader in the production of essential oils, but the challenges facing the sector are numerous. The main factors that hinder the activities of producers are:
- insufficient funding, and participation in international exhibitions, the development of presentations and the search for new markets requires significant investments. Access to financing is limited, especially for small and medium-sized producers, who, in addition to difficulties with financing, often encounter bureaucratic obstacles
- the lack of an adequate regulatory mechanism leads to compromising the reputation of Bulgarian essential oils. On the international market, our products are highly valued, but we risk losing trust when there is a lack of quality control in the country. Therefore, we appeal for stricter state control to guarantee the purity and authenticity of the production
- unscrupulous producers who offer low-quality or diluted oils damage the reputation of the entire sector. These practices undercut prices and create difficulties for producers who focus on quality
- reaching new markets requires a lot of effort - from building contacts, to participating in exhibitions and direct marketing. The sector needs more active support to promote Bulgarian essential oils as a unique product at the global level
- to cope with these challenges, we rely on quality and certification. Biocertification is key to establishing our place in the international market. Our oils are 100% pure and meet the highest standards.
And I will allow myself to make an appeal to the state in the hope that someone will hear me. In order to maintain our leading position and develop the potential of the sector, it is necessary for the state to play a more active role.
Here is an example:
- to provide more funds to support small and medium-sized producers
- to create control mechanisms to guarantee the quality of production
- to support the participation of producers in international exhibitions
- to provide grants or low-interest loans immediately before the campaign so that producers can harvest and process their production of essential oils from roses, lavender and other crops.
Bulgarian essential oils have enormous potential, but it can only be realized with the efforts of the entire sector and with the support of the state. We believe that quality and authenticity are our greatest asset and we work actively to protect and promote them.
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(B.R. - we have sent an inquiry on the case to the State Fund for Agriculture and we hope to receive a response)