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Bulgaria not to tax Russian gas transit in exchange for joining Schengen zone

In addition, Lukoil is to be recognised as a strategic asset, so its possible sale will require parliament approval.

Bulgaria not to tax Russian gas transit in exchange for joining Schengen zone
Photo: bgflags.com

Bulgaria is postponing taxation of Russian gas transit in exchange for membership in the Schengen area, according to a statement by the leaders of the GERB and We Continue the Change parties, Boyko Borissov and Kiril Petkov respectively, Nova reports.

"We talked and decided that we would follow the pan-European approach to the issue of gas transport prices. We have to work with the EU. We have decided to postpone the taxation," Petkov said.

In the next two days, Bulgarian Prime Minister Nikolay Denkov will meet Austrian Chancellor Karl Nehamer.

"Negotiations on Bulgaria's accession to Schengen are not over. Today there was a meeting of foreign ministers, and tomorrow I will meet the Austrian Chancellor. Vienna's opinion is a step in the right direction, as it has so far taken a firm stance," Denkov said, adding that "we do not accept special conditions for Bulgaria. But if we are talking about stricter compliance with European rules, then of course we will adhere to them."

There is also another agreement in the Lukoil case. The Neftochim oil refinery in Burgas is to be recognised as a strategic facility. As a result, its possible sale must go through parliament.

Bulgaria introduced a tax on Russian natural gas in October. The law introduced a levy of 20 Bulgarian leva ($10.76) per megawatt-hour of gas of Russian origin. The document is aimed at implementing the EU sanctions against Russia imposed in response to its invasion of Ukraine.

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