3 Aug 2022 13:04

Bulgaria continues contacts with Gazprom, expects changes to contract terms

MOSCOW. Aug 3 (Interfax) - Bulgaria is continuing negotiations with Gazprom on resuming supplies of Russian gas, but is demanding changes to the details of the contract.

"Although there are no supplies at the moment, negotiations are still continuing. We don't know how the correspondence will develop, but there is a chance of supplies being resumed. This matter is not completely closed. This refers to the contract that we have to the end of the year. Hypothetically they can change their conditions. We're not closing the book until there are guarantees of the absence of risks for Bulgargaz in the event of changes of conditions," the Bulgarian gas company's board chairman Ivan Topchiysky was quoted as saying by local TV channel Nova.

President Vladimir Putin signed a decree on March 31 on a "special procedure for foreign buyers' fulfilment of obligations to Russian suppliers of natural gas," under which payment for Russian pipeline gas supplied after April 1 to foreign counterparties specified in the decree must be made only in rubles.

Under this procedure, special "K" type ruble and foreign currency accounts are opened at the authorized financial institution, Gazprombank (GPB) , for foreign buyers. Foreign buyers pay for gas in the currency of the contract, which the bank then sells on the Moscow Exchange and transfers rubles to Gazprom . This is the point at which payment for the gas is considered to be completed. If this condition is not met, gas supplies will be suspended.

Bulgaria, along with Poland, was one of the first to refuse to comply with this procedure. Bulgargaz said the new two-stage payment procedure proposed by Russia creates significant risks for Bulgaria, including that of making payments without getting any gas supplies from Russia.