Bulgaria introduces a tax on Russian natural gas

Bulgaria is introducing a tax on Russian natural gas that transits through its territory to the European Union. This new initiative is aimed at implementing the European Union's sanctions against Russia, imposed in response to Russia's invasion of Ukraine. The tax is 20 Bulgarian leva (approximately $10.76) per megawatt-hour of Russian gas. This is about 20% of the price of European gas sold in Amsterdam.

Although Bulgaria does not import gas from Russia for its own needs, it is an important route for gas pipeline flows that carry Russian gas on its way to Hungary, Serbia and other parts of Southern Europe.

The move is aimed at implementing EU sanctions against Russia, as well as increasing Bulgaria's budget revenues and "fair taxation of profits earned in the country."

Almost half of the Russian gas supplied to Bulgaria comes from Turkey through the Turkish Stream pipeline, and this gas is then supplied to Hungary, Serbia and other Southern European countries.

This move by Bulgaria is causing outrage in Hungary, which receives a significant portion of the transit gas. Hungarian Foreign Minister Péter Szijjártó considers such actions "unacceptable" and contrary to European solidarity and EU rules.

The tax was established to implement sanctions against Russia, as well as to ensure fair taxation and increase budget revenues.

Overall, this new tax initiative creates uncertainty in the gas market, where gas prices have risen due to various threats to supplies and events, such as the war between Israel and Hamas, and the gas leak in the Baltic Sea.