EC approves state aid of 120 million euros for Bulgargaz

The European Commission approved a Bulgarian measure in the amount of 120 million euros in support of the public supplier of natural gas in Bulgaria "Bulgargaz" EAD, in the context of the Russian invasion of Ukraine. The aid was approved under the Temporary Framework for State aid in crisis and transition, adopted by the Commission on 9 March 2023 and amended on 20 November 2023.

The aid will be in the form of guarantees for new loans of up to 120 million euros granted to Bulgargaz. The aim is to overcome the liquidity shortage facing Bulgargaz caused by Russia's war against Ukraine.

The Commission found that the Bulgarian measure was in line with the conditions set out in the Temporary Crisis and Transition Framework and that the applicable cumulation rules were complied with. In particular, i) guarantees are provided for new loans; ii) the accumulated amount of the loan covered by the guarantees under the measure does not exceed the company's liquidity needs for the next six months; iii) the state can guarantee up to 90% of the loan principal with a maximum maturity of up to six years; and (iv) the guarantees will be provided no later than 31 December 2023. The Commission has concluded that the measure is necessary, appropriate and proportionate to overcome serious difficulties in the economy of a Member State in accordance with Article 107(3)(a) b) of the TFEU and the conditions set out in the Temporary Framework for Crisis and Transition. On this basis, the Commission approved the individual aid under EU state aid rules.

The non-confidential version of the decision will be available under number SA.109910 in the State Aid Register on the Commission's competition website once any confidentiality issues have been resolved.