Hungary and Serbia Shocked by Bulgaria’s New Charges for the Transit of Russian Gas

Hungary and Serbia have expressed shock at Bulgaria's decision to impose new fees for the transit of Russian gas through the Balkan Stream pipeline, an extension of the Turkish Stream pipeline into Western Europe. The newly introduced fees amount to 200 Bulgarian Leva (equivalent to 10.76 euros) per megawatt-hour of gas transit.

This is reported by Euractiv.

Both Serbia and Hungary rely on the Balkan Stream pipeline for their entire supply of Russian gas, along with North Macedonia and Austria.

"This is a significant problem for us. It will lead to a sharp increase in gas prices, an additional €100 per 1,000 cubic meters of gas. This is a terrible hike, and we will engage in discussions with the Bulgarian side. This decision should not be applicable to Serbia," remarked Serbian President Aleksandar Vucic on Saturday.

However, negotiations with the Bulgarian President and government are unlikely to yield positive results, as the new legislation was passed by a Euro-Atlantic majority acting independently of the President and government on matters related to Russia.

"Bulgaria decides on the fees for gas transit through its territory," stated MP Venko Sabrutev from the "We Continue the Change" party, which is part of the ruling majority. He added that Hungary and Serbia should seek alternatives.

"This is a pan-European policy to reduce Russia's income from natural gas and oil sales. We are part of the larger European family that does not want the conflict in Ukraine to persist. We must use any economic measures to stop Russia," said the MP.

According to Hungarian Minister of Foreign Affairs Peter Szijjarto, Bulgaria's new fees pose a threat to European solidarity.

"For a European Union member state to threaten the gas supply of another EU member contradicts European solidarity and is unacceptable," Szijjarto stated.

Bulgarian energy experts doubt the effectiveness of the new legislation and believe it is primarily meant to demonstrate Bulgaria's strong pro-Western stance.

The new law is aimed at implementing EU sanctions against Russia in response to its invasion of Ukraine, with the goal of ensuring "fair taxation of income generated within the country's territory and increasing revenues for the budget."

Bulgaria expects the new fees to generate additional revenues of 1.2 billion euros.

As previously reported by The Gaze, EU countries have stockpiled a record amount of natural gas in storage facilities for the upcoming heating season in 2023-2024. This will safeguard Europe from energy-related problems or the risk of gas shortages and price spikes, as witnessed last year.