How Bulgaria managed to upset Serbia and Hungary due to a new tax on the import and transit of Russian gas / Bulgarian press: The Bulgarian tax is probably aimed at Austria in the context of the Schengen negotiations

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1. How Bulgaria managed to upset Serbia and Hungary due to a new tax on the import and transit of Russian gas / Bulgarian press: The Bulgarian tax is probably aimed at Austria in the context of the Schengen negotiations
   At the end of September, parliament was debating whether to prematurely eliminate the possibility of Russian oil imports. In the end, the deputies decided that Bulgaria will continue to import for another year, but almost no one paid attention to another legislative change – the introduction of a tax for the import and transit of Russian gas, reports 24chasa, quoted by Rador Radio Romania.
   It was not until mid-October that this tax was discussed, due to discontent in Hungary and Serbia. One country is silent for now, but the Bulgarian tax is probably aimed squarely at it – it’s Austria, which still receives half of its gas supplies from Russia. At the moment, they go through Ukraine, but we know that Gazprom’s contract with Ukraine expires in 2024 and Kiev has no intention of renewing it. In other words, very soon Bulgaria will remain the only route through which Russian gas can be imported into Europe, which raises our status.
   So Austria will also become dependent on importing Russian gas through Bulgaria. Prime Minister Denkov said it quite clearly – if Austria wants energy security, it must accept Bulgaria in Schengen. Romania has also threatened to cut gas supplies to Austria if it continues to impose the Schengen veto.
   The Bulgarian tax is 20 leva MWh of gas, which at current gas prices on the stock exchange is about 20%. This is quite a fee, but there is a precedent. For example, according to Bulgargaz’s contract with the Turkish company Botas, a fee of approximately 17 leva per MWh is provided for gas transportation through Turkey. In other words, Bulgaria pays a similar tax to Turkey for the transport of gas, and we are obliged to pay it even if we do not transfer any gas through Turkey. The paradox is that the same people who signed up to pay such a tax to Turkey spoke out against the Russian gas tax.
   Hungary and Serbia spoke out against the tax introduced in Bulgaria, but these statements were largely formal. In reality, Gazprom’s contracts with Hungary and Serbia provide for a fixed price for gas at their borders (the price is fixed by a formula linked to the stock market price). All taxes and costs, before the gas reaches Hungary and Serbia, are at Gazprom’s expense. In other words, the Bulgarian tax will not affect the price in the two countries. Even if it wanted to, Gazprom cannot unilaterally raise prices for Hungary and Serbia.
   Of course, Gazprom can break the contracts with them and stop the gas completely. This will come as no surprise – after all, Gazprom has already breached its contracts with most European countries and illegally stopped supplies – it did the same to Bulgaria in April 2022. Despite requests from the interim government, Gazprom has not renewed them never. In this regard, Hungary and Serbia have known for at least 18 months that they cannot rely on Gazprom and that at some point the supplies will stop.
   Both countries are preparing for this moment – Serbia is working hard to build an interconnector with Bulgaria so that it can secure its non-Russian gas supply. Hungary also relies on the new Bulgaria-Serbia interconnector, as well as the old pipelines between Bulgaria and Romania, for gas supplies – Hungary recently announced that it has reached an agreement for deliveries with Azerbaijan and Qatar.
   If it acts rationally, Gazprom will not dare to stop deliveries. First, because Hungary and Serbia are the only European countries that still comply with Russia. And secondly, because stopping the fuel from Gazprom will free up the gas pipeline from Bulgaria to Central Europe and make it possible to transport other gas through it. In other words, if Gazprom stops deliveries, it will lose market share and allow competitors to use the gas pipeline.
   But Gazprom does not always act rationally and often does stupid things under political pressure. The Russian company has also released gas pipelines in the past, which were then used by competing suppliers. Let’s remember the gas pipeline from Ukraine to Bulgaria, which Gazprom released. Now the same gas pipeline is used in the reverse direction for gas deliveries from Bulgaria to Romania, Moldova and Ukraine. So we have to be prepared for such a scenario as well. Consequently, Bulgartransgaz must be prepared with technical capabilities to transport non-Russian gas. This will likely require connecting Balkan Stream to the national gas transmission network and the Bulgaria-Greece interconnection.
   There are claims that the fee of gas is illegal, but there are similar precedents. For example, Hungary itself introduced a tax on the import of Russian oil after the start of the invasion of Ukraine. At the time, Budapest argued that, as a sovereign state, it had the right to introduce such taxation. By the way, in recent years, Hungary has introduced a number of new taxes on foreign companies – some of them have appealed, but the European Court has confirmed that taxation is a competence of the states. In other words, Hungary proved that we have the right to tax Russian gas and oil.
   The most interesting question is whether we can collect the Russian gas tax revenue. We know that Gazprom and Russian companies are not the best payers, especially after the start of the Russian invasion of Ukraine. We remember the stories about 700 million leva income from profit tax from Lukoil – but they did not materialize. In January 2023, the Bulgarian parliament passed a tax on the import of Russian oil to compensate consumers for rising fuel prices, but there has been no revenue from this tax for 10 months already.
   If the state allows the payment of taxes on Russian oil to be avoided with impunity, then Gazprom will not pay the gas tax either. Consequently, he will not have any income. Therefore, it is time to take a firm approach – to give a deadline for the payment of dues and taxes on oil and, if this does not happen, to remove the derogation for Russian oil. This will also send a clear signal to Gazprom that dues must be paid.

2. Tax the shit out of those greedy fuckers. Go Bulgaria!

3. Good for Bulgaria! The Kremlin is hostile to our democracies. Why shouldn’t Bulgaria make it more expensive to funnel money towards Moscow?

4. Let’s go Bulgaria!

   Give Austria a taste of their own petiness and selfinterest.

5. “All taxes and costs, before the gas reaches Hungary and Serbia are at Gazprom’s expense” so no need for Hungary and Serbia to get upset, anywas we can import gas from Azerbaijan atleast they dont start wars….oh wait

6. >How Bulgaria managed to upset Serbia and Hungary

   where problem?

7. Gracious move Bulgaria: 1 stone, 3 pigeons: Austria, hungary and serbia!

8. Good job Bulgaria.

9. Austria never considered her actions could have consequences. Live and learn.

10. Ah Serbia the Russian puppy.

11. Not everything has to be a 4D underwater galaxychess move, maybe we just want the money.

12. stop it, I can only get so hard!