Overview

• Hungary has requested the European Union to initiate legal proceedings against Bulgaria for imposing a transit tax on Russian gas, alleging it to be a violation of EU's customs and trade laws.
• Bulgaria levied the tax in an attempt to diminish Gazprom's dominant role in Southeast Europe and to limit Russian influence in the region, a move that has upset Serbia and Hungary, who mainly rely on Russian gas transported through the TurkStream pipeline.
• Hungary's Minister for EU affairs, Janos Boka, claimed that the tax was implemented without consulting Hungary and threatens the region's energy security.
• In the event where the EU does not commence an infringement procedure, Hungary plans to take the issue before the EU's highest court by the end of the year.
• While Bulgaria does not foresee the tax affecting gas prices for Hungary and Serbia, it expects reduced profits for Gazprom.