Zubkov in Dismay at Gas Prices in Bulgaria

Business » ENERGY | July 6, 2010, Tuesday // 13:05
Bulgaria: Zubkov in Dismay at Gas Prices in Bulgaria Russian first deputy-PM Viktor Zubkov (L) and Bulgarian PM Boyko Borisov (R) agreed Tuesday to negotiate lower gas prices for Bulgaria. Photo by BGNES.

Russia's first deputy Prime Minister Viktor Zubkov expressed his dismay at high prices of gas in Bulgaria, after meeting Bulgaria's Prime Minister Boyko Borisov on Tuesday.

About 95% of Bulgarian gas supplies come from Russia, but Zubkov claimed that Russia sells its gas to Bulgaria at prices considerably lower than those charged to the end consumer.

According to Zubkov, Russia sells natural gas to Bulgaria at an average price of USD 339 for 1000 cub. m, while private consumers pay around USD 576, and industrial ones USD 472-502 for the same amount. Zubkov expressed concern at that fact and promised to report to PM Vladimir Putin on the matter.

In view of that, both Zubkov and Bulgarian PM Boyko Borisov committed to renegotiating prices of Russian gas for Bulgaria during the upcoming Thursday visit of a Bulgarian delegation to Moscow.

At the same time, Zubkov added that Russia sells gas to Bulgaria at about 90% of market prices.

On his part, Borisov said that during the talks it could not be clarified why Bulgarian consumers buy gas at such high prices. He added that he ordered Bulgarian state gas company Bulgargaz CEO Dimitar Gogov to report to him on that matter by Wednesday, before the Bulgarian delegation heads out to Moscow.

Zubkov committed that Bulgarian consumers should not be made to bear such disparity in prices.

At the same time, no clear signals were sent abou the fate of notorious gas delivery intermediaries. Intermediaries in selling gas to Bulgaria are Gazpromexport, Wintershall and Overgas - companies in which Russian giant Gazprom has shares.

Zubkov also commented positively on discussions of Bulgarian Belene NPP project, saying “We achieved very positive results. The project and the documents for its execution are now complete.”

Zubkov characterized Belene NPP as "a great project", commenting that the parties negotiated the highest safety possible for the future facility.

Zubkov and Borisov stated that a Road Map for the project has been prepared which sets out the full details about Belene.

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Tags: Overgas, Bulgargaz, Dimitar Gogov, Boyko Borisov, Prime Minister, Russia, Vladimir Putin, Gazprom, Viktor Zubkov, South stream, gas transit pipeline, gas supplies, natural gas, Belene NPP

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