Bulgaria and Gazprom sign new gas deal
Sofia (dpa) - Bulgaria on Monday signed a new long-term natural gas supply deal with the Russian giant Gazprom, introducing a phased hike of price from protected to fully commercial.
The new contract runs until 2030 and complements the existing deal, expiring in 2010. The price of gas would rise by 10 per cent already on January 1 and would gradually grow by 45 per cent in 2012.
The old contract allowed Bulgaria - a transit route for shipment of Russian gas to Macedonia, Greece and Turkey - to draw 42 per cent of the 3 billion cubic metres of gas it uses annually at a favoured price - a practice Gazprom had long since sought to end.
The new deal secured a "smooth transition to market prices ... avoiding the risk of sudden hikes and crises for the industries dependent on gas supplies," Economy Minister Rumen Ovcharov said.
Not accepting Gazprom's demands could have jeopardized the lucrative gas transit deal, he added. // © 2006 DPA
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