AGP Executive Report

Competition Watch: Bulgaria’s Commission on Protection of Competition is launching a preliminary probe into alleged pressure by retail chains on fruit and vegetable producers to cut purchase prices under the government’s Care Basket initiative, with early checks finding the specific products cited may not even be part of the campaign. Energy & Industry: In Stara Zagora, a June 13 forum will tackle Bulgaria’s energy future, including the coal-region transition and the planned separation of Maritsa Iztok Mines and TPP Maritsa Iztok 2 from Bulgarian Energy Holding. Gas & Infrastructure: PM Rumen Radev says Türkiye wants renegotiation of the BOTAS deal to boost gas transmission and electricity transport through Bulgaria, amid take-or-pay risks and arrears. Storage Boom: Romanian TV again spotlights Bulgaria as a “battery of the Balkans,” pointing to rapid growth in battery storage and pumped hydro. EU Policy: The EU Foreign Affairs Council next Monday is set to review steps on banning trade with Israeli settlements, continue Ukraine sanctions work, and approve new individual listings. Food & Consumer Rules: New EU honey origin labelling rules start June 14, requiring full country-of-origin breakdowns for honey blends. STEM Pipeline: An IEA report says heat pumps can be cheaper than gas boilers in most EU countries, urging stronger policy support for faster electrification. Defence Policy: Bulgaria’s President Iotova backs the defence minister’s claim that state stocks are below minimum levels, limiting direct arms supply to Ukraine.

Security & Oversight: Bulgaria’s parliamentary committee voted to request full information from SANS on KYB’s activities in the country, after repeated scrutiny of intelligence service work and claims of gaps in how the case was handled. Defence & Industry: Defence Minister Dimitar Stoyanov says Bulgaria can’t send weapons if stocks would drop below required minimums, while President Iotova backs the claim that no surplus exists—though contracts for Bulgarian defence firms should still be fulfilled. Energy & Renewables: EBRD approved a EUR 175m loan for PPC’s renewable rollout in Bulgaria, Greece and Romania, targeting ~400 MW of wind/solar and ~760 GWh clean power annually. Food & Retail Pressure: The “Care Basket” price-cut push is sparking warnings that retailers may pass the 15% burden onto agricultural producers; the agriculture minister says the state will protect farmers only with concrete, documented cases. Consumer Rules: Parliament banned unjustified price hikes and requires large retailers to publish daily prices online for the “large consumer basket.” Trade & Connectivity: Türkiye and Bulgaria reaffirm plans on energy and transport cooperation, including a new border crossing near Kapikule and gas transmission capacity as key to regional energy security. Tourism & Events: Bulgaria’s National Tourism Board marks 20 years with a “4 Seasons 4 You” gala, while Sofia Tech Park hosts “Hello, Space! Bulgaria Calling!” June 26-27. EU Honey Labelling: New EU rules require detailed origin labelling for honey blends, welcomed by Bulgaria’s affordable food group as a transparency boost.

Consumer Protection Clampdown: Bulgaria’s Parliament banned economically unjustified price hikes and ordered daily online price disclosure for retailers covering the “care basket,” with the watchdog able to set deadlines and penalties for traders that can’t prove cost justification. Competition Rules Tightened: Amendments to the Protection of Competition Act bar dominant or monopoly players from quoting “excessively high prices,” define the term against economically justified costs plus a reasonable profit, and allow CPC fines up to 10% of turnover. Construction & Infrastructure Capacity: The Bulgarian Construction Chamber says it can deliver key North–South infrastructure projects, but warns financing and shrinking workforce are the bottlenecks—calling for regulatory tweaks in procurement and incentives to bring workers back. Black Sea Aviation Readiness: Burgas and Varna airports are investing heavily and are ready for higher passenger volumes, while mayors push for more municipal control over EU funds and faster regional connectivity. Energy Storage Boost: Sungrow and Sunotec commissioned a 150 MW/600 MWh battery storage project in Nova Zagora under Bulgaria’s RESTORE scheme, supporting renewables integration and grid flexibility. Tourism Outlook: Black Sea hotel operators expect a challenging but resilient summer, stressing the need for stronger online visibility and faster adaptation to shifting booking behavior. Diplomacy with Industry Relevance: India’s FM Jaishankar met Bulgaria’s leadership, pushing supply-chain resilience and diversification—plus cooperation on engineering/defence and digitalisation/sustainability.

Diplomacy & Trade: India’s EAM Jaishankar met Bulgaria’s leadership and pushed a “contemporary, forward-looking” India–Bulgaria and India–EU partnership, stressing supply-chain resilience, diversified trade and unimpeded maritime commerce. Defense & Industry: Bulgaria’s Council of Ministers approved a plan to raise defence spending to 5% of GDP by 2035, including investment in cyber, resilience, innovation, infrastructure and defence industrial capacity. Tax Administration: Boris Mihaylov was appointed Executive Director of Bulgaria’s National Revenue Agency, replacing Milena Krastanova. Energy Restructuring: The government moves to restructure Bulgarian Energy Holding, including separating Maritsa Iztok Mines and TPP Maritsa Iztok 2, to protect EU funding under the Recovery and Resilience Plan. Nuclear Policy: BULATOM’s chair said Bulgaria should have four operating nuclear reactors by 2052; Kozloduy NPP expects stable production costs and sought a derogation to import specific Russian iron/steel for safety-critical procurement. Food Supply Chain: Prime Minister Radev and the competition watchdog responded to the “Care Basket” initiative after farmers warned retail chains pressured supply prices—CPC says affordability must not shift costs unfairly onto producers. Regional Cooperation: SEECP summit in Sofia highlighted connectivity and energy diversification; Serbia’s PM said a new Bulgaria–Serbia border checkpoint at Kalotina–Gradina should open by summer end. Ukraine Arms: Bulgaria’s defense minister reiterated the country won’t send further military aid due to capacity limits, while Ukraine’s MFA says cooperation is commercial, not free aid.

Care Basket Fallout: Bulgaria’s PM Rumen Radev says the state will protect producers and citizens if retail chains break commitments under the “Care Basket” price cuts, while the Competition Protection Commission is probing farmer complaints that chains pressured suppliers to cut prices by exactly 15%. Energy Restructuring: Energy Minister Iva Petrova moves to separate Maritsa East Mines and TPP Maritsa East 2 from Bulgarian Energy Holding, aiming to unlock over EUR 1bn under the Recovery and Resilience Plan. Nuclear Roadmap: BULATOM chair Bogomil Manchev argues Bulgaria should keep four nuclear reactors running by 2052 and complete Kozloduy Units 7 and 8, as Kozloduy NPP says fuel-driven production costs should stay stable for 2–3 years. Anti-Monopoly Oversight: Parliament’s Economic Policy committee sets up a consumer protection and anti-monopoly subcommittee, shaping how competition issues like the Care Basket will be followed. Ukraine Defense Terms: Ukraine’s MFA says it receives no free military aid from Bulgaria and that cooperation runs on commercial terms benefiting both sides. Industrial Pulse: Bulgaria’s industrial output fell 4.1% y/y in April, hit hardest by mining and utilities. Public Health Watch: The EU drugs agency warns of more potent substances, new psychoactive drugs, and higher risks from mixing drugs. Sustainability Reporting: Bulgarian companies’ ESG push grows, with a new report covering 149 firms and highlighting sustainability as a capital and investor factor.

Bulgaria’s Ukraine Policy Shift: Defence Minister Dimitar Stoyanov says Sofia will not provide further arms to Ukraine, urging Moscow and Kyiv to negotiate a “just peace,” a major break from the previous government’s support. EU Defence Industry Mood: A new ECFR poll finds most Europeans back higher defence spending and buying more EU-made weapons, while confidence in the US security guarantee hits a historic low. NATO/Regional Security: The Kremlin says the EU is not ready to mediate peace talks as a car bomb in Russia reportedly kills a general overseeing heavy ammunition supplies. Bulgaria’s Construction & Land Use: The EU Commission is closely following Bulgaria’s “Baba Alino” Natura 2000 scandal near Varna, tied to allegations over 100 illegal buildings in a protected forest. Food & Agriculture Pressure: Producers warn the “Care Basket” initiative could shift costs onto Bulgarian farmers; the Agriculture Ministry targets livestock support and faster irrigation reforms. Food Safety: Bulgaria’s food watchdog tightens dairy import checks, adding lab tests for microbes, toxins and pathogens. Skills for Industry: A dual education forum highlights shortages and lists top dual-track occupations, including electrical engineering, mechatronics and energy installations. Energy Regulation: Bulgaria’s energy regulator plans open meetings on electricity price changes and discusses higher heating/hot water prices from July 1. Regional Diplomacy: Bulgaria hosts SEECP-related foreign policy meetings, positioning Sofia as a regional hub for energy, innovation and digital cooperation. Drug Trafficking Trends: The EU drugs report warns of more potent substances and shifting routes as organised crime adapts to port policing.

Bulgaria’s Ukraine Policy: New Defence Minister Dimitar Stoyanov says Sofia will stop providing arms to Ukraine, urging both sides to negotiate a “just peace,” after Bulgaria delivered 13 aid packages since 2022. Energy Regulation: Bulgaria’s EWRC opened talks on electricity and heat price changes from July 1—proposing about a 3% average electricity rise and a 4.58% increase for heat energy, far below companies’ earlier requests. Nuclear & Power Sector: Kozloduy NPP “New Build” gets new leadership, signaling a fresh push on Bulgaria’s next-generation nuclear timeline. Renewables Finance: EBRD approved a EUR 175m loan for PPC renewable projects across Romania, Greece and Bulgaria, targeting ~400 MW of wind/solar and training for battery storage engineers. Defence Industry & Tech: BlackBelt Technologies debuted at IDEES Plovdiv with Forge-OS autonomy software and held early talks with Turkish UAV maker TEUSAN; MTG-Dolphin also unveiled a Medium USV concept at HEMUS. Regional Cooperation: SEECP’s Sofia summit (June 10) brings leaders focused on Western Balkans integration, security and energy connectivity, with Türkiye’s FM Hakan Fidan set to attend. Business & Growth: CT Interactive expands in Peru after certifying 25 more online casino games; UBS plans to replicate its Brazil wealth-management model across Latin America. Security & Crime: An EU drugs report warns gangs are shifting to smaller ports, drones and semi-submersibles to evade crackdowns.

Energy Security & Infrastructure: The Energy Community’s 2026 gas storage report says supply security in South-Eastern and Eastern Europe is improving, with Serbia and Ukraine exceeding 2025 fill targets and meeting early-2026 interim goals. Energy Sector Governance: In Burgas, Deputy PM Alexander Poulev introduced Evgeni Simeonov as the new special commercial administrator of Lukoil assets in Bulgaria, stressing transparency and strict financial discipline; Simeonov says crude deliveries to Neftohim are preliminarily guaranteed until end-July and a financial review is underway. Retail & Consumer Costs: Bulgaria’s “Care Basket” initiative kicks off with major retail chains cutting prices on basic products from June 18, aiming for stability and more Bulgarian producer involvement. Local Finance Policy: Fiscal Council member Desislava Kalcheva calls for restarting fiscal decentralization, arguing municipal own-source revenues remain too low and local tax autonomy has stalled. SME Defence Industry: Bulgaria’s Defence Minister Dimitar Stoyanov pushes for more EU support aimed at SMEs in defence projects, warning current instruments mainly benefit large manufacturers. Bulgaria–China Cooperation: President Iliana Iotova and PM Rumen Radev met Chinese State Councilor Shen Yiqin to expand trade, tourism, advanced tech and education, including AI cooperation and easing access for Bulgarian agricultural goods to China. Digital Trust Services: Evrotrust partners with Shufti to expand qualified electronic signature and VideoIdent identity verification services across Germany, Austria and Switzerland. Energy Transition at EU Level: Bulgaria’s Transport Minister Georgi Peev backs a balanced decarbonization approach for cars, with incentives over burdensome targets, and highlights rail modernization via the National Recovery and Resilience Plan. Energy Storage Tech: CRRC Zhuzhou Institute will showcase a 6.X liquid-cooled energy storage system at The Smarter E Europe 2026, citing higher energy density and smaller site footprint, tied to a 200 MWh Bohot project in Bulgaria.

Lukoil Overhaul: Bulgaria’s government appointed a new special commercial administrator for Lukoil assets, with Deputy PM Poulev demanding transparency, professional management and strict financial discipline, while the new administrator says crude oil deliveries to Neftohim are expected to be guaranteed until end-July and will start with a deep financial and sanctions-compliance review. Energy & EU Policy: Bulgaria backed a balanced EU approach to decarbonization and transport competitiveness, arguing for incentives over mandatory zero-emission vehicle targets and highlighting rail modernization with new electric trains under the Recovery and Resilience Plan. Retail Cost Relief: Major chains will cut prices on a “Care Basket” of basic goods from June 18, with over 100 products marked in-store and voluntary commitments aimed at affordability and price stability. Municipal Finance Debate: The Fiscal Council called for restarting fiscal decentralization, noting municipalities’ own-source revenues are only about 5% of public revenues and highly dependent on transfers. Renewables Financing: EBRD approved a €175m loan for PPC to build about 400MW of wind and solar in Bulgaria, Greece and Romania, plus battery training for up to 150 engineers by 2028. Retail Real Estate Deal: South Africa’s Hyprop agreed to buy Galleria Burgas for €122.2m, betting on Eastern Europe’s retail resilience and Burgas’ growth. Energy Storage Tech: CRRC Zhuzhou will showcase a 6.X liquid-cooled BESS system in Europe, citing higher energy density and smaller site footprint, tied to a 200MWh Bohot project in Bulgaria. AI Funding (Bulgaria-linked): BeatpulseLabs raised $1.8m pre-seed to scale expert-driven AI training datasets, founded by Bulgarian Nikolay Vitanov.

EU Services Pulse: Eurostat says seasonally adjusted services production rose 0.2% in the euro area and 0.4% in the EU in March after a February dip, with gains in transport/storage and information & communication, while accommodation & food services and real estate slipped. Retail Pressure in Cyprus: Eurostat reports Cyprus retail trade volume fell 1% in April, reversing earlier growth; food/drinks/tobacco rose, but non-food and automotive fuel weakened. Bulgaria Mining Spotlight: Dundee Precious Metals (DPM) announced a major Brevene South porphyry hit in Bulgaria—713m grading 1.31 g/t gold and 1.16% copper near its Chelopech infrastructure—fueling expectations for resource expansion. Rhode Goes Wider: Beauty brand rhode (e.l.f. Beauty) expands to Mexico and adds seven European markets including Bulgaria, signaling continued growth in direct-to-consumer skincare. Energy & Transport Costs: Fuel prices remain uneven across Europe; Bulgaria’s diesel is among the higher-priced entries, adding pressure to household budgets. NATO Re-arming Talk: US Defense Secretary Hegseth used D-Day to push Europe on migration and defense contributions, while Eastern allies are portrayed as moving faster on deterrence. SCC Anti-Corruption Focus: A new board member at Bulgaria’s State Consolidation Company says he will draft procedures to prevent corruption and misappropriation, starting with an audit.

Energy & Industry Finance: The European Commission adopted the 2026 European Semester Spring Package, pushing EU-wide reforms and investment to boost competitiveness, cut strategic dependencies, accelerate decarbonisation, and tackle housing and skills—using the Recovery and Resilience Facility and cohesion funds as key levers. Mining & Metals: Dundee Precious Metals (DPM) announced a major gold-copper porphyry hit at its Brevene South target in Bulgaria: a 713m intercept (1.31 g/t Au and 1.16% Cu) near the Chelopech mine, potentially supporting a resource expansion. State-Owned Companies & Governance: A new board member, Rosen Hristov, said his SCC role will focus on stopping corruption and misappropriation by drafting preventive procedures after an audit and review. Infrastructure & Logistics: Four US KC-135 tankers and other transport aircraft have left Sofia’s Vasil Levski Airport after months, with the authorization for up to 15 US aircraft previously extended to June 30. Public Sector Digital Skills: Bulgarian National Radio’s director general Milen Mitev highlighted the need for adaptation and digital transformation, citing Estonia’s e-government as a model. Science & Innovation: Bulgaria’s 34th Antarctic Expedition presented glacier monitoring and a metagenome finding on probiotic lactobacilli in Antarctic ice with potential food and pharma uses.

Mining & Metals: Dundee Precious Metals (DPM) says it has made a major gold-copper find in Bulgaria near the Chelopech mine: a 713m intercept at its Brevene South Porphyry target, including a higher-grade 398m core (1.31 g/t gold and 1.16% copper overall; 1.48 g/t and 1.45% in the core), potentially pointing to a resource expansion using existing infrastructure. Science & Industry R&D: Bulgaria’s 34th Antarctic Expedition wrapped up with new research highlights from Aheloy, including glacier monitoring using drones and automated sensor systems, plus a metagenome study finding lactobacilli in Antarctic ice that could feed future probiotic food and pharmaceutical development. Energy & Logistics Context: With Middle East tensions continuing to disrupt regional fuel shipping, Azerbaijan is positioning itself as a gas buffer for Israel, while SOCAR’s expanding role around Israeli gas underscores how quickly supply chains are being reshaped. Public Sector Digital Leadership: Bulgarian National Radio’s director general used a leadership forum to argue that public services must keep digitizing to stay competitive, citing Estonia’s e-government model. Local Industry & Community: A vintage car and motorcycle parade in Ruse drew nearly 300 participants from Bulgaria, Romania and Serbia, spotlighting classic vehicle culture and skills across the region.

State Consolidation Overhaul: Bulgaria’s Economy Minister said the State Consolidation Company’s executive director Konstantin Stoychev keeps his post, while the Board is strengthened with former caretaker energy minister Rosen Hristov to address a gap between “rosy” reports and the firms’ real financial condition. Investment Push: Deputy PM Alexander Poulev told Sofia’s mayor that investment policy will be elevated to Council of Ministers level, with a new coordination unit to speed approvals and require integration of Bulgarian suppliers into investor value chains. Industrial Growth Snapshot: Bulgaria’s GDP rose 3.1% y/y in Q1 2026, with industry’s share up to 26.7% and services still dominating value added at 71.8%. Green Transition & Skills: Green Transition Forum 6.0 in Sofia put energy, transport, AI and education on the agenda, with calls to help European firms scale and to expand digital and innovation capacity. Security & Ports: A sea drone self-destructed near Romania’s Constanta port after Russian jamming, underlining spillover risks for Black Sea logistics. Tech for Industry: NVIDIA released Nemotron 3.5 ASR, a 600M-parameter streaming speech model supporting 40 language-locales in real time. Textiles & Trade Links: Shenzhen Xmay Print Digital is pitching advanced digital printing for textiles, while rhode expands retail access to Bulgaria and other European markets. EU Policy Watch: Justice Minister Naydenov said Bulgaria is delivering tangible judicial reform results under EU rule-of-law dialogue.

Rule of Law & Anti-Corruption: Justice Minister Naydenov told the EU that Bulgaria is delivering “tangible results” on judicial reform and the fight against corruption, citing the new Act on Combating Corruption among Persons Holding Public Office and progress on Judicial System Act amendments. Defence & Black Sea Security: Defence Minister Stoyanov denied Bulgaria supplied Ukraine with naval mines, saying other aid includes anti-aircraft means and that details are classified; he stressed Bulgaria controls its airspace and Black Sea coast. Green Transition & Skills: The final day of Green Transition Forum 6.0 in Sofia put innovation, AI and education at the centre, with EU and Bulgarian officials pushing faster scaling for companies and better future-ready skills. Fintech Growth: Sofia-based Paypercut raised €5m seed funding to expand payments across Central and Eastern Europe, building from BNPL aggregation into a broader payments platform. Investment Push: Economy Minister Poulev said investment policy will move to Council of Ministers level, with a new coordination unit to cut red tape and require integration of Bulgarian suppliers for strategic investors. Economy Snapshot: Bulgaria’s GDP grew 3.1% y/y in Q1 2026, with services still the biggest share of value added. Competition & Consumer Protection: Foreign and local business chambers warned against proposed amendments to competition and consumer protection laws, arguing they could raise prices and hurt food security. Cyber & Crime Crackdown: Bulgaria coordinated an international operation with Europol against illegal sports streaming, leading to 29 arrests and removal of 27,000+ illegal streaming URLs. Energy Corridors: Romania reported Türkiye and Azerbaijan are discussing a TANAP-style electricity corridor model to link Caspian power to Europe via the region.

Bulgaria Macro: Bulgaria’s economy grew 3.1% year-on-year in Q1 2026, with industrial output lifting its share to 26.7% of value added, while services slipped to 71.8% and agriculture edged down to 1.5%. Investment Push: Economy Minister Alexander Poulev says investment approvals will be elevated to the Council of Ministers, with a new coordination unit to cut red tape and require Bulgarian suppliers to be integrated into strategic investors’ value chains, including plans for industrial zones in Dobroslavtsi and Bozhurishte. Competition & Food Prices: Foreign and local business chambers oppose proposed changes to the Protection of Competition Act and Consumer Protection Act, warning they could weaken competition and raise food prices. EU Fiscal Pressure: The European Commission has moved Bulgaria into an Excessive Deficit Procedure track, setting up a corrective plan process. Energy Infrastructure: Bulgaria and Greece say the Vertical Gas Corridor works are on schedule, including capacity upgrades on the Greece–Bulgaria pipeline. Security & Ports: A maritime drone self-detonated in Romania’s Constanta port near an oil terminal, underlining how Black Sea risks are spilling into populated areas. Industry & Tech: SVOLT showcased full-scenario energy storage solutions at SNEC 2026, while Europol backed an international crackdown on counterfeit medicines and supplements across Bulgaria and the region.

EU-Western Balkans Summit: EU Enlargement Commissioner Marta Kos says Montenegro and Albania are moving into the next phases of accession, with a new push for gradual integration and momentum heading into the Tivat talks. Green Transition & Agriculture: Green Transition Forum 6.0 in Sofia focused on sustainable cities, water resilience and the blue economy, with Agriculture and Food Minister Plamen Abrovsky urging EU-wide competitiveness for farmers and better insurance and market access. Startup & Innovation Agenda: The forum’s final day spotlighted deep tech, healthcare innovation, AI, cybersecurity and education, plus financing routes via EU innovation programmes. Energy Infrastructure (Gas): Bulgaria’s gas expansion tied to the Greece–Ukraine “Vertical Gas Corridor” is on schedule, with works in southern and northern Bulgaria progressing and pipeline capacity targeted to rise. Rail Modernisation: Bulgaria has received the first two Alstom electric multiple units, with audits and procedures expected to move them toward passenger service. Competition & Consumer Protection: Parliament approved tougher rules and fines for monopolies charging excessive prices, alongside an electronic register to flag market distortions. Logistics & Trade: A major peak-season container surcharge hits U.S. East Coast routes, including shipments from Bulgaria and the wider region, signaling tighter capacity and higher costs. Circular Economy: Bulgaria’s circular economy is framed as a long-term national priority, with a push toward resource management and a nationwide deposit return system for packaging.