Hungary has requested the European Union’s executive to initiate a legal procedure against Bulgaria over a tax it imposed on Russian natural gas passing through its territory.
Bulgaria believes the tax will reduce the privileged position of Russia’s Gazprom in southeastern Europe and deter Russian influence. However, the tax has angered Bulgaria’s neighbour Serbia and fellow EU member Hungary, which heavily relies on Russian gas coming through Turkey and Bulgaria through the TurkStream pipeline. Hungary’s minister for EU affairs, Janos Boka, has sent a letter to the European Commission urging it to launch an infringement procedure against Bulgaria. Boka argues that Bulgaria imposed the tax without consulting Hungary and that the measure violates EU customs and trade laws. Hungary is prepared to take the matter before the EU’s highest court before the end of the year if an infringement procedure is not launched.
Bulgaria, cut off from Gazprom shipments after Ukraine’s invasion, allowed the TurkStream pipeline to supply Serbia and Hungary. The EU discussed a €10 per megawatt-hour tax on Russian gas transfers, but no decision was reached. Bulgaria’s government expects the tax to result in lower prices for Hungary and Serbia but smaller profits for Gazprom.
