Bulgarian Prosecution May Shy Away from Checking Gazprom Deals

Business » ENERGY | July 7, 2010, Wednesday // 18:28
Bulgaria: Bulgarian Prosecution May Shy Away from Checking Gazprom Deals Bulgaria's Chief Prosecutor Boris Velchev has confirmed receiving detailed information from the Cabinet on the gas deals with Gazprom. Photo by BGNES

Bulgaria’s Prosecutors Office is not certain whether it will launch an investigation of the country’s 2006 natural gas deals with Russia’s Gazprom despite the request of Prime Minister Boyko Borisov.

Last week Borisov and his cabinet blamed the Stanishev government for succumbing to Gazprom pressure in 2006 and agreeing to gradually increasing the money Bulgaria pays for Russian gas between 2007 and 2012.

The Cabinet has especially blamed former Socialist Economy and Energy Minister Rumen Ovcharov, and said it was Ovcharov’s deals with the Russians back in 2006 that led to a staggering 25% hike of natural gas prices in Bulgaria as of July 1, 2010.

Earlier on Wednesday, Bulgaria’s Economy Minister Traicho Traikov said the country will insist on a reduction of 25%-33% of the price it pays for Russian gas.

Prime Minister Boyko Borisov said all relevant documents will be handed to the prosecutors, and that he expected “sever” sentences for those who allegedly betrayed Bulgaria’s interests in dealing with Gazprom.

On Wednesday, Bulgaria’s Chief Prosecutor Boris Velchev has confirmed that his institution has received from the government “a very detailed analysis of the contracts for the supply of gas from the Russian company Gazprom.”

However, he also made it clear that the prosecutors might refuse to start a new investigation because several months ago the Gazprom contracts were inspected at the request of Maria Kapon, a former rightist MP, and no violations have been found.

Velchev said his office will compare the new data submitted by the Borisov government with its previous investigation to determine whether there are grounds to start tackling the issue again.

Bulgaria’s gas deals with Gazprom are confidential because of a clause that requires the consent of both parties to make them public – a request made by Economy Minister Traikov recently but rejected by Gazprom, in Traikov’s own words.

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Tags: Gazprom, Russia, Russian gas, gas supplies, natural gas, Rumen Ovcharov, Traicho Traikov, Economy Minister, Boris Velchev, Boyko Borisov, Chief Prosecutor

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