U.S. Investors Target Strategic Bulgarian Gas Storage Site for Russian Supply

By Charles Kennedy - Aug 04, 2025

A group of U.S. investors is in talks with the Bulgarian government to acquire a minority stake in the Chiren underground gas storage facility, the country’s only such site and a key regional hub for balancing and reverse flows across southeastern Europe, Reuters reported exclusively on Monday.

The group reportedly includes financier Stephen P. Lynch, infrastructure specialist Fei Wang, and former Trump campaign official Brad Parscale. Bulgarian state energy officials confirmed the exploratory discussions, though no transaction terms have been disclosed. The storage facility currently contains volumes of Russian-origin gas, delivered through TurkStream, and remains under the operational control of Bulgartransgaz EAD, a subsidiary of Bulgarian Energy Holding EAD (BEH), which in turn is 100% state-owned. 

Chiren’s relevance is growing for the European Union in the aftermath of the expiration of the Ukraine-Russia transit agreement at the end of last year. With European Commission policy focused squarely on supply diversification, Bulgaria emerges as a potential transit substitute and strategic fallback route. 

However, U.S. investor interest in a storage site that still contains Russian gas, which is technically not sanctioned, marks a notable shift in capital exposure to this game. 

According to the Wall Street Journal, Elliott Investment Management is also considering infrastructure linked to Russian gas exports via Turkey, indicating a broader pattern of U.S. capital repositioning toward stranded or undervalued midstream assets.

Domestically, Chiren has faced procurement scrutiny. The European Public Prosecutor’s Office is investigating a €78 million expansion contract tied to the facility, while Bulgaria’s energy ministry recently cancelled a drilling award and pledged to relaunch tenders in line with EU transparency rules.

According to April 2025 figures reported by Serbia Energy, despite the legal complications, over 87% of Chiren’s capacity for the 2025–2026 season has already been booked. Industry observers say the site’s location and integration with Balkan transit routes make it a prime asset amid shifting gas flows and new investment alignments. The U.S. State Department has not commented on the proposed deal.

Moscow Claims EU Has Lost $1 Trillion From Ditching Russian Energy

By Charles Kennedy - Aug 04, 2025

• Russia claims the European Union has lost $1.16 trillion (1 trillion euros) due to terminating energy and other trade deals with Moscow over the past three years.
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• Trade between the EU and Russia has significantly declined from $482 billion in 2013 to practically zero, representing lost profit according to Russia.
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• Despite the costs and energy crisis, the EU remains committed to ending its dependency on Russian energy, as evidenced by new sanctions packages and a roadmap to halt all Russian gas imports by the end of 2027.
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Russia has put a price on Europe’s withdrawal from trade and energy deals with Moscow in the past three years. 

The European Union has lost $1.16 trillion (1 trillion euros) due to the termination of energy and other trade deals with Moscow, Russian media quoted Deputy Foreign Minister Alexander Grushko as saying on Monday. 

“There are different estimates. If we talk about the majority of experts, the total amounts to as much as more than a trillion euros taking into account losses from termination of energy cooperation with Russia, from the curtailment of trade,” the official was quoted as saying. 

Trade in 2013 was worth $482 billion (417 billion euros), last year it had fallen to $69.4 billion (60 billion euros), and “now it is practically approaching zero. This is lost profit,” Grushko said. 

The EU may be paying a higher price for energy, including with the 2022-23 energy crisis, but it remains committed to ditching Russian energy and stepping up sanctions against Russia’s oil and gas exports. 

On July 18, the EU adopted the 18th sanctions package against Russia, targeting a hundred more ‘shadow fleet’ tankers, energy trade, and traders and banks enabling it, and lowering the price cap on Russian crude oil to $47.60 from $60 per barrel.  

Russian gas supply via pipelines to Europe has slumped since 2022, after Russia cut off many EU customers from its gas deliveries, and Nord Stream stopped supplying gas to Germany, after Russia reduced flows and after a sabotage in September 2022. 

Russian pipeline gas supply to the EU via Ukraine stopped on January 1, 2025, after Ukraine refused to negotiate an extension to the transit deal.

However, some European Union countries, including Hungary and Slovakia, continue to receive Russian gas through the TurkStream pipeline via Turkey and the Balkans—the only remaining route for Russian gas to Europe. 

Earlier this year, the EU unveiled a roadmap to end dependency on Russian energy, which includes a halt to all imports of Russian gas by the end of 2027.      

By Charles Kennedy for Oilprice.com