Bulgaria lost up to $23 bln due to EU sanctions on Russia, MP says

By Al Mayadeen English
Source: Agencies
Today 14:18

Bulgarian MP Ivelin Mihaylov says EU sanctions on Russia have cost Bulgaria up to $23 billion, citing losses in tourism, nuclear energy, and trade.

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A protester waves a Bulgarian flag and whistles during a protest in downtown Sofia, Bulgaria, Wednesday, July 15, 2020. (AP Photo/Valentina Petrova)

Bulgaria has lost between 15–20 billion euros ($17–23 billion) as a result of the European Union’s sanctions against Russia, according to Bulgarian lawmaker Ivelin Mihaylov, leader of the Velichie (Greatness) party.

Speaking to RIA Novosti, Mihaylov cited disrupted energy projects and a sharp decline in key sectors as major contributors to the loss.

"For example, the situation with the Belene nuclear power plant and the nuclear fuel, that we now buy and store elsewhere, has already cost us billions from this alone. We are also losing billions in tourism. We have easily lost 15–20 billion euros that we could have received," Mihaylov told the Russian media outlet.

Mihaylov noted to RIA Novosti that Bulgaria’s economy has been heavily impacted in areas that once relied on Russian clients, including tourism and real estate. In addition to the service sector, the country also lost access to affordable construction materials and fertilizers previously imported from Russia and Belarus.

The Belene nuclear power plant project was one of the most financially damaging casualties of the sanctions, according to Mihaylov. The unfinished plant, located near the town of Belene on the Danube River in northern Bulgaria, saw its future thrown into question in 2022 after then-Prime Minister Kiril Petkov announced Bulgaria's withdrawal from the project. Russian state nuclear corporation Rosatom had participated in the construction tender prior to the cancellation.

Mihaylov slams severed Bulgaria-Russia diplomatic ties

"In the current situation, we [Bulgaria] cannot lift the sanctions against Russia. Only if the entire Bulgarian government changed its policy … We are a member of the EU. We have no contacts with Russia and no idea how to cooperate. Calling for the lifting of sanctions without communicating with anyone from Russia would achieve nothing. Diplomatic relations between the countries are severed. This is not a one-time measure, but part of a long-term strategy," Mihaylov told RIA Novosti.

He added that while Russia bears "some responsibility" for the broken ties, it is also difficult to maintain relations with what he described as a "mafia government" in Bulgaria.

Moscow has repeatedly stated that it is able to withstand sanctions pressure, arguing that Western countries lack the courage to acknowledge the failure of their own policies. Western officials themselves have also raised concerns over the limited effectiveness of sanctions imposed on Russia since the outbreak of the Ukraine conflict.

Other EU nations affected by sanctions on Russia

European nations outside of Russia have also faced the brunt of these economic sanctions on Moscow. Hungary's Foreign Minister Peter Szijjarto warned in September 2024 that European companies may be at risk due to such measures.

“Here I would like to disappoint the idealists, as the situation is that everyone in Europe is doing this,” Szijjarto said. "The difference between us and the others in general is that we speak honestly and openly about this issue. All of Europe does business with the Russians, but some deny this; we don’t need that."

In March of this year, Szijjarto further emphasized the negative effects of Russian sanctions on the EU economy.

“The EU has basically stabbed the European economy in the heart by the sanctions,” he said, arguing that sanctions damaged the EU's competitive edge and isolated the bloc.

“The Russian economy is far from being on its knees," Szjjarto said. "We are now close to peace, but not because of the sanctions."

Experts in Russia also warned that sanctions on Moscow will cause blowback against the very nations implementing them.

Russian billionaire Alisher Usmanov said in an interview with Italian newspaper Corriere Della Sera in August 2024, "They wanted to harm the Russian economy, and here it is growing. They wanted to punish the business elite, and the Russians brought the money back home. The Russian economy is adapting to the sanctions, while neighboring markets are suffering. Europe rejects Russian energy resources and is forced to buy them at a much higher price."

Other nations that have been affected include Germany, whose industrial and manufacturing sector heavily relied on cheap Russian energy.