Caretaker Agriculture and Food Minister Ivan Hristanov confirmed in an interview on Nova TV that the state-run initiative “People Shop” is currently operating at a loss. The project, launched in mid-December 2025 with the aim of providing cheaper goods to over 100,000 Bulgarians in 55 small settlements, generated around 200,000 leva (100,000 euros) in revenue last year, while expenses reached approximately 250,000 leva. For 2026, projected revenues are 37 million leva, but according to Hristanov, profitability would require turnover of 110–130 million leva, raising questions about the feasibility of the initiative. He added that state interventions rarely lower prices effectively, instead creating subsidized outcomes.

Hristanov also highlighted several cases of questionable spending uncovered by inspections at the Ministry of Agriculture and Food. Examples include a 140,000-leva contract for a single assessor evaluating animals that died of smallpox over 60 days, and inflated costs in the construction of an animal incineration facility and a 330-million-leva irrigation project. The minister said a thorough financial analysis of the project would be conducted, with detailed monthly breakdowns requested through 2030, to assess its economic and social value.

Almost simultaneously, the parliamentary group There Is Such a People (TISP) demanded Hristanov’s resignation over alleged conflicts of interest and politically motivated staffing decisions. Deputy floor leader Stanislav Balabanov accused Hristanov of appointing individuals connected to his personal and party network into key positions. He cited the appointment of Angel Mavrovski as head of the Bulgarian Food Safety Agency, raising concerns over potential conflicts tied to Mavrovski’s private business activities and prior irregularities during his tenure at the Bulgarian Anti-Fraud Agency.

Balabanov also criticized Hristanov’s choice of Ivana Murdzheva as deputy minister overseeing European funds, highlighting her ties to NGOs such as the Bulgarian Family Planning Association and questioning the suitability of her appointment. He called on Hristanov to either provide documentation refuting the allegations or resign immediately alongside those appointed under his leadership. TISP also urged President Iliana Yotova to intervene and request the minister’s removal, framing the issue as a matter of public accountability and proper governance.

The controversy has underscored broader concerns about the economic viability of state-run social initiatives, the transparency of public procurement, and the potential for political favoritism in caretaker appointments. Hristanov defended his stance, emphasizing that the state’s role should be limited to ensuring equal market conditions rather than direct market intervention, and that losses from artificially maintained pricing should not be mistaken for genuine price reductions benefiting consumers.

The “People Shop” pilot remains active in approximately 50 locations in the Plovdiv region, while the debate continues over its financial sustainability and the propriety of appointments made under Hristanov’s tenure.

Peevski's connection
The “People Shop” initiative has strong ties to Bulgarian media mogul, oligarch and politician Delyan Peevski, who spearheaded the rollout of the chain across the Plovdiv region in December 2025. Peevski, sanctioned under the Magnitsky Act, partnered with the Central Cooperative Union and the Cooperative Union – Plovdiv to open over 70 stationary stands and one mobile store, offering more than 45 essential items at low, consistent prices. The project was explicitly designed to bring affordable Bulgarian products closer to residents of smaller towns and villages, ensuring access for over 100,000 people without requiring travel to larger cities.

The chain operates with a lean management team, minimizing operational costs and enabling competitive pricing. Peevski’s involvement has drawn scrutiny from industry observers and trade experts, who note the political and financial connections underpinning the venture. Critics, including Nikolay Valkanov of the Association for Modern Trade, have described the project as part of a broader effort by Peevski and aligned political actors to extend state influence into retail, effectively creating a network of state-linked shops subsidized by taxpayers.

Despite the initiative’s social aims, concerns persist about the economic feasibility and long-term sustainability of the model, as well as the concentration of influence in the hands of a single politically connected figure. Peevski’s strategy includes plans for expansion nationwide, further integrating the “People Shop” network with the state-backed retail infrastructure, while maintaining a focus on a limited assortment of high-demand products and strict price controls. This alignment of private interests with state-backed initiatives has fueled debate over transparency, market competition, and the appropriateness of such politically linked enterprises operating in the Bulgarian retail sector.