Gazprom pulls out of Bulgarian JV Overgas Inc
MOSCOW. Jan 29 (Interfax) - Gazprom has completed its withdrawal from Bulgarian joint venture Overgas Inc., reducing its stake in the company from 50% to zero on January 27, the Russian gas giant reported.
Gazprom's board of directors authorized the sale of the company's stake in Overgas to the joint venture itself in August 2020. Gazprom had been trying to divest its stake for five years, but the deal was held up by legal battles between the former partners.
Gazprom's board approved the sale of 0.49% of shares in the venture from the balance sheet of PJSC Gazprom and 49.51% from the books of Gazprom Export LLC to JSC Overgas Inc. for just 15.5 million euros last August 12.
Gazprom formed the Overgas joint venture with Bulgarian entrepreneur Sasho Dontchev back in 1995, and Russian gas was supplied to Bulgaria through the venture for many years. The Bulgarian authorities pushed Gazprom to enter into a direct gas supply contract with state company Bulgargaz for a long time, and one was finally signed at the end of 2012, with supplies on it starting in 2013. As of 2016, Bulgargaz remained the sole recipient of Russian gas.
Overgas Inc. disputed the end of its contract with Gazprom in 2015, filing a lawsuit against the Russian company in the International Court of Arbitration of the International Chamber of Commerce, as well as a complaint to the European Commission about possible violations of antitrust legislation.