site.btaMedia Review: November 14

Sofia Municipality's intention to raise hourly parking prices in the capital's blue and green zones, sanctions on Lukoil and the draft 2026 State Budget dominate the media headlines on Friday morning.

SOFIA PARKING RATES

24 Chasa reports that parking prices in Sofia will double from January 5, 2026, following a decision of the Sofia Municipal Council adopted on Thursday. The hourly fee in the blue zone (the city centre) will rise from BGN 2 (EUR 1.02) to EUR 2, while in the green zone it will increase from BGN 1 (EUR 0.50) to EUR 1. According to the daily, paid parking spaces in the capital will expand steeply, from the current 33,000 to 88,000. The changes were approved after the groups of Continue the Change - Democratic Bulgaria and Save Sofia merged their separate proposals into a single package of reforms. The idea for a new red zone in the city centre, supported by Save Sofia, was dropped, but councillors endorsed the consolidation of subzones in the central boroughs, a measure expected to ease parking for residents.

The yearly parking pass for residents in the blue zone will cost EUR 150 and EUR 100 for the green zone. The prices for a ticket for a second car will increase to EUR 300 in the blue zone and EUR 200 in the green zone. From July 1, 2025, the paper parking ticket will be phased out and replaced by QR codes or online payment channels such as the Sofia Plus mobile application and the website of the Urban Mobility Centre.

Residential parking permits will also rise in price. For residents of the blue zone, annual permits will cost EUR 150 for the first car and double for the second. In the green zone, the price will be EUR 100 for the first car and double for the second. Students living in dormitories in Studentski Grad will be able to purchase a residential permit upon presenting a tenancy contract or accommodation order. Current permits will remain valid until their expiry. Stricter rules will apply to corporate parking subscriptions, which may occupy no more than 10% of spaces in each subzone. Prices will increase to EUR 800 per year in the blue zone, EUR 500 in the green zone, and EUR 255 outside the regulated zones. The Municipality expects these measures to free up around 500 parking spaces.

Municipal estimates suggest the reform will bring around BGN 75 million in additional annual revenue. Funds will be allocated to sidewalk repairs (BGN 20 million), construction of parking facilities and purchase of public transport vehicles (BGN 20 million), public transport financing (BGN 20 million), and major infrastructure projects (BGN 15 million). Half of the funds will be managed directly by boroughs mayors and the rest by Sofia Mayor Vassil Terziev.

Duma daily quotes Ivan Takov, leader of BSP–Sofia and head of the BSP for Bulgaria coalition in the City Council, saying the new measure cannot be described as a “parking reform”. “Digging deeper into people’s pockets cannot be called a ‘reform in parking,” Takov told colleagues who backed the price increase. He argued that a genuine reform would involve construction of new parking facilities, improvements to public transport, including new rolling stock and more frequent service, so that it becomes a viable alternative to private cars. According to Takov, raising prices and expanding the scope of paid parking constitutes a punitive regime that will deepen existing problems rather than solve them. He stressed that despite promises for investment, the approved changes will not ease the serious parking difficulties, particularly in the central areas of Sofia. Takov added that the decision comes at a difficult time, as residents are already under financial pressure from inflation and the upcoming introduction of the euro. 

Speaking on Nova TV’s morning show, Boris Bonev (Save Sofia) accused the Bulgarian Parliament and government ministers of illegally occupying at least 1,000 municipal parking spaces in the city centre. He claimed that attempts to remove barriers on public land were met with threats, including warnings that the municipality would lose access to ministerial support for projects. Bonev said that around 300 parking spaces near the St. Alexander Nevsky Memorial Cathedral are used not only by MPs but also by their staff, friends, and former colleagues, and that the Parliament even legalized this in its rules by designating the area as a “security zone.”

According to Bonev, Sofia’s parking reforms aim to create more rotation and availability of spaces for residents, noting that some central areas previously had nearly 100% occupancy with no turnover. He acknowledged that the reform is not perfect but represents a compromise after over a year of negotiations with political parties. He emphasized that the changes will make parking more difficult for commuters while improving access for residents and reducing unnecessary traffic.

Trud and bTV also cover the topic. The morning programme of Bulgarian National Television had a debate on the new parking rates.

LUKOIL

The cover story in Capital Weekly is about the swift passage of amendments to the Act on Administrative Regulation of Economic Activities Associated with Oil and Petroleum Products, granting the State the right to appoint a special administrator with near-unlimited powers over Lukoil, including the ability to sell company assets, without the owner’s right to appeal. Critics warn that the amendments open the door to potential nationalization of the country’s largest private company and create legal and investment uncertainties. 

President Rumen Radev partially vetoed the changes, but the Parliamentary Energy Committee promptly overrode the veto. Observers now await guidance from the US Office of Foreign Assets Control regarding potential sanctions exemptions. Key questions remain about how Lukoil’s refinery operations and fuel distribution will function after November 21, when US sanctions on Lukoil, Rosneft, and their assets take effect, who will be appointed as special administrator, and how crude oil will be sourced and financed, the story says. 

GERB leader Boyko Borisov told journalists that the Government already has a candidate for the post of special administrator but declined to reveal the name, while Prime Minister Rosen Zhelyazkov said the names will be announced after the legal amendments are published. The announcement has been delayed due to behind-the-scenes deliberations. Ahead of the fast-track nationalization vote, an informal competition reportedly took place, and several Bulgarians working abroad in the oil sector for major companies were consulted.

According to Capital, Ivo Petrov, a former OMV executive linked to local businessman Georgi Samuilov, is rumoured as a potential candidate for the post. Petrov reportedly travelled from London to Sofia just before the legislative changes. He worked for OMV Supply and Trading in London until 2018, specializes in organizing oil deliveries. He told Capital that he only learned from the media about the speculation regarding the post. Industry sources say Petrov has ties to Georgi Samuilov, owner of Insa Oil, which could potentially block his candidacy. A company connecting the two, Plovdiv-based Menino Invest, was registered in 2015 with Petrov joining shortly after, and Samuilov becoming a partner a year later. Petrov later transferred the company entirely to Samuilov in September 2025.

Petrov could still join the team in a deputy role, overseeing imports and trading, while another deputy would handle financial operations.

Lukoil confirmed that all its retail stations will continue normal operations and are fully supplied. Initially, fuel sales are expected to maintain existing structures, with Lukoil Bulgaria continuing to supply wholesale and retail clients. In the longer term, there are concerns that wholesale distribution may be channelled through commodity exchanges, potentially benefiting a few large local players. The Bulgarian Energy Holding could act as a buyer, if necessary, though past state management of energy assets, such as Bulgargaz and Toplofikatsiya Sofia, shows the risks of operational losses and inefficiencies.

Mandatory fuel reserves remain a contentious issue. Private companies, particularly Lukoil, hold about 80% of the required stock, with ongoing disputes over compliance with state regulations. Lukoil-affiliated firms argue that reserve obligations create monopolistic advantages and distort market competition, a matter currently under judicial review. 

Dnevnik cites the Chair of the State Agency State Reserve and Wartime Stocks, Asen Asenov, who said that Bulgaria currently holds about 98% of the legally required 90-day fuel reserves. He said the country has petrol reserves for roughly 35 days and diesel reserves for more than 50 days, with about half of the total stored domestically and the rest abroad. He also added that one of the main traders, Insa Oil, does not maintain emergency reserves, while the company argued that Lukoil’s monopoly prevents it from doing so. A day later, Energy Minister Zhecho Stankov announced that the tax warehouses hold fuel stocks sufficient for six months of gasoline, four months of diesel, and two months of aviation fuel. The discrepancy between their statements can be explained by the fact that tax warehouses actually store more fuel than the mandatory reserves, and the quantities vary.

About one-third of Bulgaria’s crude oil is stored abroad, with domestic reserves mainly in Lukoil tax warehouses, which remain state property and can be accessed without the company’s consent. The main challenge is refining crude oil into fuel, and the Burgas refinery may be unable to operate after November 21 if U.S. block its activity. Energy expert Martin Vladimirov stressed that any stockpiled crude must be processed before that date.

Under EU rules, in case of supply difficulties, Bulgaria must notify the European Commission, which then coordinates with the International Energy Agency and may authorize release of reserves. In urgent or partial crises, member states may release stocks below the minimum requirement but must immediately inform the Commission.

DEBATE OVER 2026 BUDGET

24 Chasa publishes a poll conducted against the backdrop of intense debate on how to raise income and limit expenditures in the 2026 budget so that the deficit remains below 3%. A solid majority of 56% of 4,050 respondents support cutting the state administration and reducing staff in state-owned enterprises as the most effective way to increase revenues in the state budget. 

Another 20% of respondents support freezing police salaries and reducing the number of Interior Ministry pensioners. Former interior minister Veselin Vuchkov tells 24 Chasa that the 2025 Interior Ministry budget amounts to BGN 4.2 billion, with BGN 3.9 billion spent on wages and social contributions. He warns that even BGN 5 billion will not be enough in 2026. The cost burden is increased by rules allowing police employees to retire at 54 with 20 monthly salaries paid at once. Following this year’s wage hike, most Interior Ministry employees earn BGN 3,000–6,000 monthly, while pensions exceed BGN 2,000. Some continue to work until 60 while collecting both salary and pension, Vuchkov says.

A further 11% of respondents believe higher budget revenues should come from attracting foreign investors and supporting Bulgarian businesses, provided that bureaucratic hurdles are reduced. The paper highlights persistent delays in processing documents, including slow procedures for hiring workers from outside the EU. Another 8.5% favour stimulus measures to promote production and expand the tax base. Only 1% of respondents support raising social-security contributions, despite such a move being planned in the new budget. Merely 2.3% favour tax increases—an option opposed by businesses, most political parties and many economists.

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Trud reports that the Association of Bulgarian Employers’ Organizations (AOBR) has announced a package of measures aimed at reducing state budget expenditures by over EUR 3 billion. According to AOBR, the Government is abandoning its commitment to maintain Bulgaria’s current tax and social security model and is shifting the cost of higher public-sector wages and social contributions onto businesses and private-sector workers. The employers proposed limiting pay increases in the Security and Defence and Higher Education sectors to 5% instead of the current automatic 12% rise and freezing funds for the Supreme Judicial Council. 

The association also opposed raising the maximum social security income to BGN 4,600, the mandatory use of registered sales software (SUPTO), expansion of high-fiscal-risk goods, and the introduction of an electronic system to track trucks, arguing that such measures would not reduce inefficiency in public spending. At the same time, AOBR proposed specific cost-saving measures including suspending automatic increases in public-sector salaries, cutting at least 5,500 permanently vacant positions in the administration, maintaining current administrative operating costs at 2025 levels, reducing the capital investment programme by about 3%, and keeping a buffer in the central budget to save at least EUR 300 million. They also suggested updating property tax assessments to generate additional revenue of around EUR 1.1 billion, including more than EUR 140 million in VAT, paid by households. According to the employers, the proposed measures together could positively impact the budget by over EUR 3.1 billion.

Meanwhile, the Confederation of Independent Trade Unions in Bulgaria (CITUB) called for increased revenue rather than cuts. The Union proposed raising the corporate tax from 10% to 15%, increasing the dividend tax to a minimum of 15%, and introducing new fiscal measures such as a financial transaction tax and a digital tax. CITUB also advocated for raising the maximum pension to at least EUR 1,873 and increasing the minimum daily unemployment benefit to EUR 18.41 to better reflect the official poverty line.

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Speaking on Bulgarian National Radio, economist Adrian Nikolov said that Bulgaria risks following Romania’s path of high deficits and rising debt if corrective measures are not taken. He argued for immediate budgetary consolidation, emphasizing the need to limit public spending rather than relying on additional revenue from a population already burdened by high taxes. Nikolov suggested that government expenditure should remain below 40% of GDP to prevent a fiscal spiral, criticizing current plans that project 46% spending under the same revenue levels. He also cautioned that increasing tax and labour costs could push employers and workers into the informal economy.

The economist also addressed municipal finances, noting that while capital programmes allocate slightly more funds, local governments’ share of own-source revenues has fallen from 40% a decade ago to under 25% today. This growing dependence on central government transfers limits municipalities’ ability to fund local initiatives and invest in regional development.

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On BNT, MP Gabriel Valkov of BSP–United Left said that Budget 2026 is "the most left-leaning in recent years". He argued that criticism from large businessman Kiril Domuschiev shows the budget targets wealthy corporations, which will now be required to pay higher taxes. Valkov noted that this will generate more state revenue for public needs. The budget raises second-year maternity benefits from BGN 780 to BGN 900, and increases the maximum insurable income to EUR 2,352, meaning higher taxes for people earning above that threshold. He recalled that the BSP had proposed introducing a progressive tax system and a gradual downsizing of the public administration.

SOFIA ON EUROPE’S FAST TRACK

Capital Weekly reports that in mid-November, the European Commission (EC) unveiled its High-Speed Rail Action Plan (HSR Action Plan), a strategic framework that includes a major investment package for rail infrastructure. Its goal is a complete transformation of rail travel in Europe by 2040, creating a fully integrated, high-speed, and operationally interoperable network that positions trains as the preferred alternative to short-haul flights. For Bulgaria, this initiative has concrete implications. The capital, Sofia, is included on the new high-speed network map. EC documents cite the Sofia-Athens route as a flagship example, projecting travel time reductions from over 13 hours today to just six. Similarly, Sofia-Bucharest travel, currently around 10 hours, is expected to drop to six.

Over the past decade, Bulgaria has received substantial EU funding for railway modernization. Under the Transport and Transport Infrastructure Operational Programme (2014–2020), EUR 1.52 billion was allocated, with over EUR 700 million more earmarked for 2021–2027 projects. Additional funds have flowed via the Connecting Europe Facility and the Recovery and Resilience Facility, bringing total EU investment in Bulgarian rail to over EUR 2 billion. Yet results remain modest. On the critical Orient/East-Med corridor linking German ports to Turkiye, Greece, and even Cyprus, the Timisoara-Sofia segment remains incomplete, leaving Bulgaria poorly connected to neighbouring capitals. The Western Balkans corridor, Sofia-Skopje, also remains stalled.

Currently, Bulgaria has only three licensed private rail operators, whose services will begin in December 2026. Without open, competitive markets, new infrastructure remains underutilized.  The country’s main task is to successfully integrate into the wider network, achieving high-speed connections to at least one neighbouring capital to benefit business, the economy, and tourism.

COUNTERFIT EURO BANKNOTES

Telegraph’s front-page story reads that second-hand cars are smuggling counterfeit euro banknotes from Italy, hiding them in secret compartments within vehicles, according to the Bulgarian Ministry of Interior. The scheme primarily involves EUR 10 and EUR 20 notes, which are then circulated at petrol stations and large retail chains where high customer traffic makes detection less likely. Several suspects have already been arrested in connection with the operation. Police officials explained that the criminals load multiple cars onto car transporters, assuming they will not be inspected, but investigators have found hidden caches in various locations inside vehicles, including under seats. The Ministry urges anyone suspecting a banknote to be counterfeit to immediately call emergency number 112 and provide details on where and how the note was received. Lyubomir Nikolov, head of the Sofia Regional Directorate of Interior, warned that in the coming months the lev-euro exchange is expected to increase, emphasizing the importance of using only licensed institutions, as the counterfeit notes currently in circulation are of very high quality and can deceive even those familiar with euro and lev banknotes.