ACF: We insist on full transparency of the Bulgarian part of the Russian energy projects

Open letter to Prime Minister Kiril Petkov

Dear Mr. Petkov,

Over the years, there have been a serious number of questions about the way in which major energy projects on the territory of the Republic of Bulgaria have been initiated, conducted, and implemented, especially the completed projects for the expansion of the gas transmission network, which are a continuation of the Turkish Stream project.

There are huge suspicions about hidden geopolitical agendas and direct corruption influence in these projects. Highlighting them as a possible source of strategic corruption influence is of particular importance for the fight against corruption in Bulgaria.

In summary, over the years, there have been numerous reports with indicators of the following corrupt practices and abuses:

– Direct political interference to illegally accelerate some projects and delay others.

– Non-transparent formation of consortia for the execution of works by politically empowered persons and intermediaries.

– Evidence of direct monetary corruption.

– Evidence of buying “media” services in the form of media service contracts.

– Purchase of expensive plots of land from private owners for infrastructure projects.

– Unjustified and unclear price increases for construction works, in some cases up to 400% above those originally announced.

– Payment of “earmarked” additional salaries to senior management in the Bulgarian energy sector to directly buy influence.

In this regard, and with your stated priority of the rule of law and transparent institutions, we demand the following:

I. Publication of all minutes of high-level meetings between Bulgarian officials and the Russian side about the construction of South Stream (2010-2014) and later, the extension of Turkish Stream through Bulgaria (from 2015 until now), including those with the participation of the President of Gazprom and special envoys of the President of Russia.

II. Publication and auditing the entire documentation of South Stream Bulgaria Ltd from the agreement for its establishment to the tenders conducted for its construction, with particular

emphasis on all unusual costs such as property acquisition, service fees, and contracts for legal and media services, etc. – as a landmark example of non-transparent implementation of an infrastructure project.

III. Publication of the roadmap or memorandum for developing the gas transmission network signed between Gazprom and the Bulgarian Ministry of Energy in 2017. This document turned out to be “missing,” according to a statement by the Bulgarian Energy Minister, which should already be subject to institutional scrutiny at the highest level.

IV. Publication of the communication between the Republic of Bulgaria and the European Commission regarding the South Stream pipeline and the Turkish Stream extension.

V. Publication of correspondence and contracts, including those for loans, between the Republic of Bulgaria, on the one hand, and Gazprom and its subsidiaries, on the other, relating to the construction of the pipelines.

VI. Verification and declassification of the reports received by the State Agency for National Security on corrupt practices concerning to these projects and review of the work done on them.

VII. Publication of all transcripts of the Council of Ministers since 2010, in which these projects were discussed, and decisions related to them were voted.

Dear Mr. Prime Minister,

The above requests for publication of information of high public interest do not exhaust all the problematic corruption points in the Bulgarian energy sector. However, their fulfillment would be a good start of transparency and an example of clearly putting the public interest as the main priority of state governance.

Corruption in large energy projects is not a myth but a reality. It is time for transparency about what is happening in the Bulgarian energy sector, and you can count on our expert help to achieve this goal. Every day of continued information blackout works against the interests of Bulgarian citizens.

Sincerely,

Boyko Stankushev,

Director of the Anti-Corruption Fund Foundation