site.btaMedia Review: July 17

OVERVIEW

No single topic dominates all media on Friday.

POLITICS

In an op-ed entitled "What is Bulgaria's place, Mr Radev?" and published by Capital, Alexander Detev comments on Prime Minister Rumen Radev's statement that Bulgaria will not join the Coalition of the Willing supporting Ukraine. Radev argued that lasting peace should be achieved through diplomacy rather than continued military assistance.

The article reads: "'Bulgaria's place is not in the coalition of the willing,' said Prime Minister Rumen Radev after announcing that he had rejected Bulgaria's invitation to participate in the meeting of the coalition of the willing in Paris. So where does Bulgaria belong, Mr Radev?

"The leaders of Denmark, France, Germany, Italy, Norway, Spain, Sweden, Ukraine, the Netherlands, and the United Kingdom met with representatives from dozens of other countries, including Moldova and the Republic of North Macedonia, to discuss support for Kyiv, joint military exercises, and the defence of Europe against Russian threats. According to Bulgaria's prime minister, Bulgaria's place was not there.

"Leading European economies announced the establishment of an Anti-Ballistic Missile Coalition to ensure a missile defence architecture that deters and counters future missile threats. In addition to security, this also means multimillion-dollar investments in the participating countries. Bulgaria is once again absent. Radev maintains that such decisions are made only within the context of the EU and NATO, and officially that is the case, but the Bulgarian leader's behaviour in Paris carries significant symbolic weight. This is because Europe's relations with postwar Ukraine and Russia are the elephant in every diplomatic and political room.

"The Ukrainian military is considered the strongest and most effective in Europe, as US Secretary of State Marco Rubio recently confirmed. In this regard, the partnership with Kyiv is of paramount importance to Europeans, whose primary goal is to guarantee their territorial integrity, expand their military capabilities in the coming years, and ensure their defence against Russia, which continues not only its hybrid but also its military provocations against NATO.

"The agreement on security cooperation, which Andrey Gurov's caretaker cabinet signed but which Rumen Radev sharply criticized, is a symbolic step precisely toward ensuring the Bulgarian armed forces' access to Ukrainian capabilities and know-how.

"Bilateral and multilateral European defence projects, the foundations of which are laid precisely at forums such as the one in Paris, will guarantee investments worth billions. Bulgaria, where the arms industry has generated over 4% of GDP in recent years according to data from the Ministry of Economy, can only benefit from its participation. European investments in Bulgarian arms production are also in question. Recently, Economy Minister Alexander Poulev announced that the large-scale project by the German arms giant Rheinmetall will be revised.

"Finally, Ukraine's post-war reconstruction is expected to be Europe's largest project since World War II. It requires massive investments in infrastructure, energy, and industry. And it will create significant opportunities for European companies in construction, engineering, energy, and information technology. And who won't have a place there? Bulgaria, which – at the very moment when the Ukrainian army is turning the tide of the war, and European sanctions, combined with the Ukrainian offensive, are bringing the Russian economy to the brink of collapse – is talking about cutting off military and financial aid to Kyiv."

The op-ed ends with a direct address toward the Prime Minister: "What is Bulgaria's place, Mr Radev? With those who are fighting while queuing at gas stations?".

ENERGY

In an interview for Mediapool.bg, Martin Vladimirov, head of the Energy and Climate programme at the Center for the Study of Democracy, commented on Economy Minister Alexander Poulev's announcement that an independent international audit of Lukoil's businesses in Bulgaria is needed to establish and verify some of the identified risks. Vladimirov said: "Even today, Lukoil uses an international auditor who advises them on transfer pricing, which is negotiated with the government every year. There is a very thorough audit of Lukoil's operations because it is one of the country's largest taxpayers and has an agreement with the National Revenue Agency on exactly how certain company expenses will be accounted for, and this process is consulted with major companies. In my view, a new international audit of Lukoil's operations is largely a stalling tactic, a smokescreen, and a way to give the company more time to operate under the current scheme."

Vladimirov continued: "We will wait for the audit; its results will be reviewed for six months, and then it will take another six months to decide what to do. In the meantime, the refinery will continue to operate as before, and one of the main goals is to avoid a sale, because this is one of the most attractive companies in the Lukoil group. I don't think the Russians want to sell, and they are coming up with all sorts of mechanisms to make this deal unattractive or to make it look like a bad deal to a potential investor." The expert warned that at present, the government's actions seem to be aimed more at protecting the interests of the Russian company, so that it can avoid the impact of international sanctions.

Asked whether the announced possibility for Neftohim to purchase crude oil from all of LITASCO's counterparties opens the door to imports of banned Russian oil, Vladimirov said: "In fact, even now, Russian oil can be purchased covertly, through a third-party trader who conceals or changes the ownership of the oil by transferring it from ship to ship or by altering the cargo documents. Rather, the idea is that when oil is purchased from LITASCO, the profits remain with that company – specifically, in offshore accounts outside Bulgaria.

"LITASCO's operations are currently split between the United Arab Emirates and Switzerland, but the Swiss company is subject to severe sanctions imposed by the Swiss government, the United Kingdom, and the United States. Banks are unwilling to provide services for LITASCO's operations, which is likely why Lukoil began purchasing from third-party, affiliated traders last year.

"You may recall that such reports appeared in the international press. It turned out that after Lukoil and Rosneft were sanctioned, they began trading Russian oil increasingly through third parties that have no corporate ties to the Russian companies but are, in fact, intermediaries in the sale of crude oil, for example, to India. The European Union and the United States were quick to sanction a large number of these trading intermediaries, making it very difficult for Lukoil and Rosneft to sell oil abroad. They had to come up with new structures.

"I suspect that there is currently an attempt, through the Bulgarian government, to maintain the old status quo with LITASCO, even though it is toxic and could lead to a potential outflow of capital to Russia via offshore zones. Bulgaria, as a result of pressure from Lukoil and threats to initiate arbitration proceedings, is doing the company a favour."

The author warned that the ongoing situation is detrimental to Bulgaria's national interest. He added: "In fact, the United States is the de facto special administrator, and it is insisting that the Russian company be sold to a strategic investor with no ties to Russia. The sanctions exemption granted to us is temporary, intended to give Bulgaria sufficient time to carry out such a sale. The situation is similar at the international level. Lukoil International received a reprieve from the entry into force of US sanctions to allow time for a deal regarding Lukoil's international assets." Vladimirov warned that he sees no signs of Bulgaria looking for a new investor.

Asked whether Bulgaria can become the new owner of the refinery, provided it finds the funds necessary to purchase the assets, the author stated: "In my opinion, the Bulgarian government would not be a good owner. There is a serious risk that the company could be decapitalized. We see what is happening at the Kozloduy NPP and at Bulgargaz. But Bulgaria could potentially nationalize the refinery and compensate Lukoil at a fair price determined by an international auditor. After that, however, [Bulgaria] must sell [the refinery] to a strategic international company with experience in operating oil assets."

The interviewer suggested that since the government's protection of Russian interests is so obvious, it is unlikely that the US and the UK are unaware of it. He asked Vladimirov how long this situation can continue and whether extending the exemptions can stop, to which the expert responded: "This is an entirely political decision. Recall that Gazprom's NIS refinery in Pancevo [northern Serbia] had been granted nine months of exemptions, and then suddenly the company fell under sanctions, which triggered a fuel crisis in Serbia. And this, in turn, prompted the rapid initiation of a deal to sell its assets to Hungary's MOL. This scenario is entirely possible for Bulgaria. Especially if the U.S. determines that the special administrator's actions are facilitating the outflow of Russian capital back to Russia and non-compliance with sanctions. And that is precisely why Bulgaria's actions regarding LITASCO are of utmost importance. The truth is that we do not know enough about what the special administrator is doing or what is happening with crude oil supplies to the refinery."

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An article in Capital.bg reports that the Kozloduy NPP recorded a collapse in its profits for 2025, as they amounted to BGN 12.7 million, compared to BGN 222 million a year earlier. The financial report states that this is primarily due to increased production costs, contributions to state funds, and higher corporate income tax.

The article reads: "What's more – although the Kozloduy NPP is considered a wealthy company that has traditionally generated large profits, in 2025 it turned out to have reduced liquidity and was already experiencing serious payment difficulties, for several reasons. The most intriguing of these, however, is indirectly linked to the golden field, for which the company was prepared to pay over BGN 215 million. It also relates to how the company itself valued a plot of land spanning over 20 hectares at a total of BGN 651 million. The report is particularly interesting in light of recent changes in the NPP's leadership, following the departure of nuclear physicist Georgi Kaschiev, who was succeeded by Dragomir Dimitrov, former director of the National Intelligence Service and the State Intelligence Agency.

"On several occasions, Kaschiev pointed out that he initiated an audit of public procurement contracts, cost-cutting measures, and an optimization plan, including staff reductions. However, none of this ever came to pass. As for the company's modest profit, Kaschiev stated that, given the NPP' loans, it is more of an accounting figure.

"The report states that at the end of 2024, the capital of the subsidiary, Kozloduy NPP - New Build EAD, was increased by BGN 300 million from the plant's own funds to support the project for Units 7 and 8 of the Kozloduy NPP. Separately, based on a decision by the Board of Directors of Kozloduy NPP (and with the consent of the Bulgarian Energy Holding), it was increased once more, but through a non-cash (in-kind) contribution – 20.2679 hectares of land valued at BGN 651 million, or an absurd price of over BGN 3,200 per square metre. The land was needed for the construction of the new nuclear facilities, and permission for the in-kind contribution of the land was granted following an appraisal of the property (the in-kind contribution) by three experts, who also determined the value of the contribution – a figure that is, to put it mildly, disturbing."

The article concludes that the status quo is absurd, given that, on the one hand, the Kozloduy NPP provides funds to the New Build project, which in turn returns the favour by securing a loan for the Kozloduy NPP. "Thus, to finance its current payments, on May 12, 2025, a loan agreement for BGN 50 million for a term of one year (at an interest rate of 3.2%) was signed between Kozloduy NPP - New Build EAD as the lender and Kozloduy NPP as the borrower. Subsequently, the loan was increased to BGN 100 million, and separately, the nuclear power plant took out an overdraft in the amount of BGN 50 million at a fixed annual interest rate and with a 12-month term. The loan is intended to cover potential future deficits and provide working capital, according to the company's report."

TOURISM

24 Chasa quotes Anton Penev, head of the municipal enterprise Tourism, who reported in an interview for Nova TV that more than 20 restaurants operating in Sofia were visited by Michelin representatives, however, none of the establishments is likely to earn Michelin stars. Penev noted that the assessment procedure generally lasts 4 to 5 years. He said: "The reports we have access to paint a picture of a dynamically evolving culinary scene that has its own merits. We were told that we have exceptionally delicious food, excellent chefs, and a diverse culinary scene featuring a variety of cuisines represented in the capital, including vegetarian options. Local Bulgarian flavours are easily appreciated by foreign visitors. All of this sets the stage for a rapidly evolving culinary scene."

Head chef Boris Petrov reported that inspectors identified shortcomings in service and menus that were excessively long and extensive, which the Michelin inspectors cited as a sign of the use of frozen products. Another major problem cited is the significant discrepancy between prices and service quality. The inspectors also noted a lack of trained sommeliers and staff to present the wine lists and tell guests about local producers.

As a result of Michelin's recommendations, Sofia Municipality has announced that it is launching an 18-month strategy to transform the capital into a recognized culinary destination in Europe. This will be achieved through measures to improve service quality, promote Bulgarian wines and local products, support independent restaurants, and enhance the urban environment, so that Sofia can attract more tourists who are more likely to stay longer and spend more.

TRAFFIC

The Bulgarian National Television (BNT) conducted an experiment with former professional rally driver Dimitar Iliev. To demonstrate the risks of driving under the influence of alcohol, the driver was wearing optical head-mounted glass that simulated the visual effect of having blood alcohol content of 1.5 per mille. The driver, a BNT reporter, struggled with an otherwise easy exercise, commenting afterwards: "Everything looked extremely blurry. Very unclear image. It felt awful. I could barely see the cones. I'd even say I was seeing them almost double." Iliev noted that consuming alcohol before driving presents a double whammy, as it impairs the driver's senses and reflexes while simultaneously, it also gives the driver an inflated sense of confidence.

ENVIRONMENT

An article published by the Bulgarian National Radio warns that some 70 hectares of centuries-old forest have been affected by dangerous pests such as pathogenic fungi and leaf-mining moths. The text is based on research conducted by the Bulgarian Academy of Sciences and forestry experts. Ivan Kulyov, an expert at the Southwestern State-Owned Enterprise, reported: "Now we wait. That is also the recommendation of the experts – to wait some time to see which trees will survive this fungal attack and which will not. Perhaps by the end of August or early September, there will be another inspection, and a sanitary felling will be ordered."