Bulgaria Nears Completion of Leva Withdrawal as 81% Taken Out of Circulation
As of February 6, 2026, Bulgaria continues to make steady progress in withdrawing the national currency, the leva, from circulation.
The contract between Bulgaria and Turkish gas company Botas, signed on January 3, 2023, during the caretaker government of Galab Donev appointed by President Rumen Radev, has come under scrutiny in parliament. Energy Minister Zhecho Stankov warned that the deal could end up costing Bulgaria up to 6 billion leva over its 13-year term, significantly more than the initially projected 4 billion leva. Bulgaria is required to pay Turkey approximately 1 million leva per day in gas transmission fees, regardless of whether the capacity is utilized or not.
Stankov emphasized that Bulgaria pays for the capacity to import 1.85 billion cubic meters of natural gas annually but can only receive up to 1.3 billion cubic meters due to limitations at Turkish terminals. Thus far, only six tankers of liquefied natural gas have been delivered under the contract, which permits up to 14 tankers annually. This discrepancy, according to Stankov, means Bulgaria is effectively paying for a service it cannot fully utilize - likening it to purchasing a truck vignette for a highway that only cars can drive on.
During a parliamentary hearing, key figures involved in the signing of the contract - former Bulgargaz CEO Denitsa Zlateva, former acting Energy Minister Rosen Hristov, and Bulgartransgaz CEO Vladimir Malinov - denied allegations that Radev pressured them to finalize the deal. Hristov clarified that he signed a preliminary agreement with Botas on December 24, 2022, because Zlateva was rushing to catch a flight, a move that has since raised questions about the protocol followed.
Despite facing criticism, Zlateva defended the contract, stating that Bulgargaz had proposed different conditions that were ultimately not included in the final agreement. Meanwhile, Hristov dismissed claims of receiving commissions and announced intentions to file a defamation lawsuit against those suggesting corruption.
MP Delyan Dobrev from GERB criticized the agreement as either an act of gross incompetence or outright corruption, suggesting that the contract could not be renegotiated or terminated without paying the full 4 billion leva. WCC-DB MP Ivaylo Mirchev echoed Dobrev's sentiment, calling the deal "amateurish corruption" and warning that it effectively opens the door for Russian gas to enter Bulgaria through Turkey.
Stankov revealed that Bulgaria had approached Hungary, Slovakia, Moldova, and Austria with offers to transfer unused gas capacity, but these countries declined, citing economic unfeasibility even with a 30% price reduction. Meanwhile, ongoing negotiations with Botas for contract renegotiation have yet to yield results. Stankov sarcastically invited former Minister Hristov to join the renegotiation efforts, offering to compensate him for any successful outcome.
The contract has drawn widespread criticism, with MPs from Revival, DPS, BSP, TISP, and MECH condemning the deal as detrimental to Bulgaria's energy sector. Only Ivelin Mihaylov from Greatness defended Radev, characterizing the hearing as a political witch hunt aimed at undermining a potential political opponent.
The controversy has also raised concerns about potential Russian gas imports through Turkey, given that Botas could act as a transit hub for methane from Russia. In 2023, a temporary parliamentary commission was formed to investigate the contract, and in April 2024, its findings were forwarded to the prosecutor’s office and the State Agency for National Security (SANS). As of now, there is no information on the status of these investigations or their potential outcomes.
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