European Commission Greenlights EUR 120 Million Aid to Bulgargaz Amid War In Ukraine

The European Commission has given its nod to a EUR 120 million aid package for Bulgargaz Ltd., Bulgaria's state gas supplier, in response to the repercussions of Russia's invasion of Ukraine. This support, sanctioned under the State Aid Temporary Crisis and Transition Framework, is intended to alleviate Bulgargaz's financial strain resulting from the conflict.

The approved aid comes in the form of guarantees for up to EUR 120 million in fresh loans extended to Bulgargaz. The primary objective is to address the liquidity challenges faced by the company due to Russia's military actions in Ukraine.

According to the EC, the Bulgarian measure adheres to the criteria specified in the Temporary Crisis and Transition Framework, maintaining compliance with the cumulation regulations. The aid guarantees apply strictly to newly acquired loans, capped at an amount necessary to sustain Bulgargaz's liquidity over the subsequent six months. Additionally, the state can back up to 90% of the loan principal with a maximum repayment period of six years, with guarantees to be finalized by December 31, 2023.