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Bulgaria sues Russian Gazprom, seeking compensation of more than $430 million

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Bulgaria sues Russian Gazprom, seeking compensation of more than $430 million
A Gazprom PJSC Slavyanskaya compressior station, the starting point of the Nord Stream 2 gas pipeline, in Ust-Luga, Russia, Jan. 28, 2021. (Andrey Rudakov/Bloomberg via Getty Images)

Bulgarian state gas company Bulgargaz EAD has started arbitration proceedings against Russia's Gazprom, the Bulgarian company reported on July 9 on its website.

In 2023, the Russian gas giant suspended Bulgargaz's long-term contract, which covered 90% of the quantities of natural gas delivered by Bulgargaz to customers.

The Russian company had stopped supplying natural gas to Bulgargaz in April 2022.

Bulgargaz EAD launched proceedings on July 8 at the Arbitration Court of the International Trade Chamber in Paris, according to the statement.

In May, Bulgargaz EAD sent the Russian company a proposal for a voluntary settlement of the Bulgarian company's claim in accordance with their contract. But Gazprom failed to respond.

"After the Russian side did not take action to settle the matter out of court, Bulgargaz took the necessary steps to protect the company's interests," the Bulgarian company said.

Bulgargaz EAD is seeking compensation worth 400 million euros ($432.76 million) because Gazprom breached the contract in 2022 by unilaterally cutting off natural gas supplies, the statement said.

Gazprom's revenue fell by 30% last year with a net loss of $6.9 billion, the largest in 25 years.

According to the Financial Times, Russia's share of European gas imports has dropped from 40% in 2021, the last full year before the invasion, to only 8% in 2023.

In seeking new markets, Russia has been forced to export natural gas at reduced prices.

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Kateryna Hodunova

News Editor

Kateryna Hodunova is a News Editor at the Kyiv Independent. She previously worked as a sports journalist in several Ukrainian outlets and was the deputy chief editor at Suspilne Sport. Kateryna covered the 2022 Olympics in Beijing and was included in the Special Mentions list at the AIPS Sport Media Awards. She holds a bachelor's degree in political journalism from Taras Shevchenko University and a master's degree in political science from the National University of Kyiv-Mohyla Academy.

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