Tsvetelina Penkova to FAKTI: We should not and will not give up on the Belene NPP and the EU supports us in this

Continued…

- 25% is becoming Donald Trump's favorite number. Will US sanctions also reach the EU. What is the EU doing in response?
- In the context of global trade and geopolitical tensions, the European Union is facing challenges related to US trade policies. The alleged imposition of US tariffs on certain European goods could have significant consequences. The EU is developing strategies to protect its economic interests, including through diplomatic negotiations and, if necessary, the introduction of reciprocal measures. However, let us not open this door. The aim is to achieve balanced and fair trade that protects the interests of European producers and consumers. The European Union is an irresistible factor on the world economic stage. I think Donald Trump believes that he can negotiate separately with each country and thus have the advantage of the larger one, but he will have to understand that in the EU trade policy is common and unites all countries. This gives the EU a much better position to negotiate and defend its interests.

For the time being, these tariffs are used more as a means to force the US and the EU to review their trade relations.

We do not yet know whether they will be imposed by the US, but the EU has already prepared an update of the list of US goods on which it may impose reciprocal tariffs. The main stake that the US is currently focusing on with the threat of imposing these tariffs is the digital regulations imposed by the EU on all digital companies operating in our market. If it comes to a real trade war, the EU could also impose a tax on digital platforms that operate in our market and generate profits here, but do not pay tax on their income here.
I recall that in previous similar actions in 2018, the EU imposed tariffs worth 2.8 billion euros on American goods such as bourbon and Harley-Davidson motorcycles.

Now, after the expiry of the agreement between the European Commission and the Joe Biden administration, these “measures“ could be automatically resumed on April 1, unless other actions are taken.

Any response, of course, must be proportionate and the Commission will have to provide evidence of damage to EU industries. In addition, it would require approval from at least 15 of the 27 member states and would take time. Restrictions on the American service sector, including large technology companies, are being discussed. The Union's response would also include withdrawing intellectual property protection or limiting its commercial exploitation, for example by banning software downloads or streaming services. But, again, I hope that reasonable solutions will be found, and not leading to a trade war that would be detrimental to both sides.

- Bulgaria is a key energy producer in the region, but we are selling the reactors for the Belene NPP to Ukraine… How do you view this?
- I have said it many times. The future of the Belene NPP is key to the energy security of Bulgaria, the region and the continent as a whole. This project is a strategic necessity and is of key importance, because part of the equipment has already been purchased and the cost of the completed project will be significantly cheaper and will make us very competitive compared to our neighbors. We should not and will not give up on the Belene NPP, and the EU supports us in this. Its completion will establish Bulgaria as a leader in nuclear energy not only in the Balkans, but also in Europe. I believe that the Belene NPP project must be completed with national and European support, as it is the key to stability, energy independence and new economic opportunities. The successful implementation of the project will ensure low electricity prices for Bulgarian households and industry, create new jobs and stimulate economic growth.

The issue of selling the equipment is a serious dividing line.

There are still many ambiguities. The possible sale of the equipment is a strategic mistake and contrary to the national interests of our country. Even at the European level, it is incomprehensible. Over 15 new reactors are planned in Europe in the next 12-15 years. While Europe is investing in nuclear energy, we are “selling” equipment for next to nothing. This is not profitable even in the context of market relations.

Strategic equipment is not sold at a price below the market price.

In a situation where the market and demand are oversaturated with new projects, we declare that we want to sell a key resource that would guarantee our energy security, independence and affordable electricity prices. Bulgaria has technology and equipment purchased at prices from the past decade. The price of such equipment is expected to rise significantly in the coming years, due to the impossibility of producing it quickly enough and meeting the increased demand. Even in Brussels there is a bewilderment as to why, given the ready infrastructure for the Belene NPP and the available equipment, we are not taking advantage of it and not completing the project. There is no other country in the world that has a ready and licensed nuclear site and is not using it. Let us talk more about the joint participation of European technologies and experts, and not so much about the sale of equipment. France has already offered assistance towards reviving the plant as early as 2023. and 2024.

- Another important aspect when talking about energy is the development of the gas transmission network. What is planned at the EU level?
- The European Union is aware of the critical role of gas transmission infrastructure for energy security and energy market integration. A new round of joint gas purchases is planned for March 2025, covering supplies for the next five years. This initiative aims to reduce dependence on specific suppliers and provide better conditions for Member States through collective bargaining. There are voices starting to be heard wanting to set a condition that the entire EU should not receive more than 1/3 of its natural gas supplies in a year from a single supplier. The argument is that this will ensure true diversification from several sources, and we will not simply switch dependence from one large supplier to another. I will have to watch to see if this initiative will gain popularity among the European institutions. Investments in the expansion and modernization of the gas transmission network will allow for more efficient use of existing resources and integration of renewable energy sources. Bulgaria, with its strategic geographical location, has the potential to become a key gas transit hub in Europe, which will strengthen our energy security and contribute to the diversification of energy supplies in the region.

For cooperation on the topic of gas transit, we can look to Azerbaijan.

Last November, during my visit to the global UN climate conference COP29, I held meetings with members of the Azerbaijani parliament and the Deputy Minister of Energy. We discussed that natural gas infrastructure requires serious investments and long-term commitments. If we do not conclude long-term contracts, there are no guarantees for investments. Demand for gas will continue to exist, but stable connections are needed to guarantee investments in infrastructure. Azerbaijan is one of the most reliable partners and suppliers for both the EU and Bulgaria. On their part, there is an understanding that gas is a transitional energy source, but this transition will last at least 20 years. A guarantee is needed to expand production and infrastructure.

Azerbaijan considers Bulgaria one of its most important strategic partners in the EU and relies on our leadership role in these processes.

Predictability is key for long-term strategic energy partners. As a transit energy hub connecting Europe with resources from Azerbaijan, Turkey and Greece, Bulgaria can help meet the continent's energy needs. An additional incentive would be the significant economic benefits for our country through transit fees and investments in infrastructure, because it is precisely the revenues from these transit fees that can be used for social programs supporting households that are currently paying unaffordable electricity bills, as well as for modernizing the electricity grid. Generally speaking, through strategic investments and partnerships, we can ensure a stable and prosperous energy future for our citizens and industries.