Bulgaria seeks more favorable gas terms in new negotiations with Turkey over "Botaș"

It is clear to everyone that the contract with "Botaș" was signed under force majeure circumstances, when there were real threats to natural gas transit through "TurkStream". This was commented on by energy expert Ivan Hinovski on the show "Tvoya Den" ("Your Day") on "NOVA NEWS" regarding the start of talks to change the terms of the gas agreement.

According to him, the document was signed in a situation of serious pressure and risk for the state, which is precisely why some of its parameters are not optimal for Bulgaria. Hinovski also noted that the contract was shrouded in secrecy for a long time and used primarily for political purposes, but according to him, the myth that the agreement is not subject to change has already been definitively debunked.

"One cannot speak of efficiency at the moment. As of today, the conditions are not the most favorable, but negotiations are already starting, and there are new market conditions in the region," the energy expert explained. According to him, it is precisely the changed environment of the energy market in the region that opens a window for a better agreement.

Hinovski predicted that a serious restructuring of the accumulated obligations under the contract is forthcoming and emphasized that Bulgaria has a real chance to negotiate a more favorable deal from which to derive concrete dividends. He pointed out that Turkey is in acute need of infrastructure solutions for water delivery to its northwestern regions, which he describes as a "desert".

"In this contract, we have the opportunity for a major Trump-style deal. I believe that a large part of the debt will be forgiven and the Turkish side's claims will be dropped," Hinovski stated categorically, hinting at a scenario where energy and infrastructure interests could be linked.

Regarding the changes in the management of state energy companies, the energy expert described the complete personnel changes in the "Bulgarian Energy Holding" undertaken by the new Energy Minister Iva Petrova and the initiated audits as a completely normal and expected step with the arrival of a new government.

He emphasized that the previous management team followed a single line of development, while now a new approach to management is being introduced, aimed at curbing the leakage of funds from state enterprises. According to him, this is a key condition for restoring control over financial flows in the sector.

"We have said many times that there are a number of corrupt practices, but nothing was done because a number of political parties fed off the energy sector. There is an extremely great need to 'air out' the industry," Hinovski emphasized. He added that if the best practices of anti-corruption reforms are applied consistently, the state of the energy sector could improve, and some prices could even go down.