Malinov Denies “Chiren” Pressure, Questions Kyoveshi Investigation
Bulgartransgaz Executive Director Addresses Examination, Pledges Cooperation
Table of Contents
- Bulgartransgaz Executive Director Addresses Examination, Pledges Cooperation
- Bulgartransgaz Executive Director Under Scrutiny: Q&A on the Chiren Gas Storage Project
- Main Questions and Answers
- What is the Chiren gas storage project?
- Why is the Chiren gas storage project under investigation?
- Who is Vladimir Malinov and what is his role in the investigation?
- Is Vladimir Malinov suspected of wrongdoing?
- What is the status of the European funding for the project?
- What is the current progress of the Chiren gas storage expansion?
- what are the key milestones and expected completion dates for the Chiren gas storage project?
- Have there been any allegations of political interference or pressure?
- Main Questions and Answers
Executive Director of Bulgartransgaz, Vladimir Malinov, stated on Friday that he will not resign despite an ongoing investigation by the European Prosecutor’s Office.
Malinov affirmed his commitment to assist in the completion of the public procurement investigation related to new drilling at the Chiren gas storage facility.
Earlier reports indicated that Malinov did not appear at the European Prosecutor’s Office in Bulgaria on March 24, after being summoned regarding the gas storage case. His lawyer stated he was hospitalized.
During a press conference, Malinov explained that he had previously testified twice as a witness in the case. His absence on march 24 was due to hospitalization on March 21 for a pre-existing health issue.
According to Malinov, representatives from the European Attorney General’s office, led by Laura Kovesi, initiated a review at Bulgartransgaz last summer and seized documentation related to the Chiren gas storage facility. He stated that he and his employees are cooperating with the investigation.
Malinov asserted that the company has not committed any violations. He added that all funds paid under the terminated contract with Glavbolgarstroy were returned, and European funds allocated to the project remained untouched. He clarified that the contract’s termination was at the contractor’s request, a decision Bulgartransgaz agreed to, resulting in cost savings for the contractor.
Motivation to Continue Project
Malinov stated that he had never experienced pressure regarding public procurement at Bulgartransgaz. He noted that since becoming director in 2018, with a brief interruption while serving as energy minister, he has maintained positive relationships with all political parties without relying on any specific support. Malinov believes the scrutiny is an attempt to derail the gas storage expansion, which has only strengthened his resolve to continue.
The press conference was convened to address his absence from the European Prosecutor’s Office on March 24. Meanwhile,Bulgarian European Prosecutor Teodora Georgieva,who was recently removed from her post,stated she had recused herself from the Chiren case due to perceived threats related to the investigation.
The European Prosecutor’s office has not specified the reason for the investigation into Georgieva. Though, speculation suggests it is indeed related to leaked video footage purportedly from the office of Petio Petrov, a former official.
Georgieva told media outlets upon her removal that she felt threatened by Mr. Peevski, who is alleged by the removed subcontractors as a person who exerts pressure on them to upload the margin of the profit of the contracting company and to fulfill the project at an unbearably low prices.
She claimed witnesses testified that Delyan Peevski demanded 20 million BGN from subcontractors and pressured them to except lower payments for their work.
Due to my threats and warnings that I have received that if I have been charged with the Minister of Energy, records and compromises in the media will be released, I have been taken to this case and my drain is respected.
In early march, Georgieva stated in an interview that significant violations had been identified in the Chiren project.
Prior Testimony
Malinov addressed accusations that he avoided appearing before the European Prosecutor’s Office on March 24 by claiming hospitalization. he explained that he was admitted to the hospital three days prior due to a recurring health issue. His lawyer provided official documentation to the European Prosecutor’s Office. He was discharged from the hospital on March 27 but terminated his leave to return to work. I’m here,
he stated, addressing concerns that he might flee the country.
He clarified that he had testified twice in the case, once in October 2024 and again in February 2025. He stated that after becoming director of Bulgartransgaz,following the appointment of Energy Minister Zhecho Stankov,he provided additional facts to EU prosecutors after a search in August. The contract with Glavbolgarstroy was later terminated.The investigation was initiated based on a report that a change in drilling technology would save 80 to 90 million BGN.
There are no violations and crimes committed to the conduct and agreement of this public procurement,
Malinov stated. He maintained that all actions were conducted according to company regulations, with decisions approved by the management and supervisory councils of Bulgartransgaz, and also the Council of Ministers and the Energy Minister. He also noted that the State Financial Control agency reviewed the procurement process and found no irregularities.
Increased Storage capacity
Malinov noted that Glavbolgarstroy returned all advance payments and other funds under the terminated contract last October. These payments did not originate from the 78 million EUR provided by the European environment and Climate, which is why the European Prosecutor’s Office became involved.
The project aims to increase the gas unit’s capacity from 550 million cubic meters to 1 billion cubic meters. Two phases are complete: the gas pipeline connecting Chiren to the Bulgartransgaz gas transmission network was commissioned on Nov. 22,2023,and the new compressor and measuring stations are operational as of March 26. The storage capacity will reach 650 million cubic meters by May 1, the start of the gas season. The outcome of the new public procurement for three plus three wells, involving three consortiums including U.S. companies, will be known by April 11. This shows confidence in Bulgartransgaz and in the implementation of the project,
Malinov said.
European Commission Support
Malinov expressed confusion over the scrutiny he faces in Bulgaria, given the european Commission’s support for the new public procurement for wells. On March 13, an additional agreement was signed, preserving the 78 million EUR in European funding and extending the deadline for it’s use until the end of 2027.
It’s bewildering how, on the one hand, the EC supports us, and on the other…
Malinov commented. But I will continue the project, despite and nonetheless of my well-wishers and opponents. I have been in BTG since 2010,and in state structures for 20 years. During this period I have encountered a lot of attacks, but no one who has contributed to BTG can take it away and what is happening to me to continue.
He reiterated that he does not intend to resign.
Malinov denied any pressure in the selection of the contractor and stated he was unaware of the 20 million BGN allegedly requested by Peevski from subcontractors. He asserted that his appointment was not politically motivated and that no political force or leader had exerted pressure on him.
I will not believe that there are attacks against the project,
he said, but suggested that the aim is to disrupt the gas storage expansion, which would contribute to diversifying gas trade in the region. The project has been underway for a long time, and after its opening in 2022, with the option to double the capacity by the end of 2025, the current issues arose, with completion now expected by the end of 2027.
Conflict of Interest allegations
Malinov addressed allegations that his return to Bulgartransgaz after serving as Minister of Energy constituted a conflict of interest.
The “We Continue the Change-Democratic Bulgaria” party raised concerns in January with the Anti-Corruption Committee and the European Prosecutor’s Office.Malinov stated that, as a lawyer, he is aware of the legal requirements and cited a 2017 decision by the Anti-Corruption Committee in a similar case, stating that the one-year restriction on working in the same field applies to private companies, not state-owned entities.He questioned how information he received as energy minister could harm the state’s interest,given that BTG is a state-owned company. He noted that the energy regulator approved his reappointment at BTG.
When asked if he had political support for his position, he replied, I never needed political support.
Bulgartransgaz Executive Director Under Scrutiny: Q&A on the Chiren Gas Storage Project
This Q&A-style article delves into the ongoing inquiry surrounding the Chiren gas storage expansion project, offering insights into the situation based on details provided by the Executive Director of Bulgartransgaz, Vladimir Malinov.
Main Questions and Answers
What is the Chiren gas storage project?
The Chiren gas storage project aims to increase Bulgaria’s gas storage capacity. The project seeks to boost the gas unit’s capacity from its current 550 million cubic meters to 1 billion cubic meters. The project involves the expansion of the existing Chiren gas storage facility to enhance energy security and diversify gas trade in the region.
Why is the Chiren gas storage project under investigation?
The European Prosecutor’s Office is investigating the expansion of the Chiren gas storage facility. The investigation is related to public procurement.
The European Prosecutor’s Office began a review at Bulgartransgaz last summer.
The investigation was initiated based on a report that a change in drilling technology would save 80 to 90 million BGN.
The investigation is related to the public procurement investigation related to new drilling at the Chiren gas storage facility.
Who is Vladimir Malinov and what is his role in the investigation?
Vladimir Malinov is the Executive Director of Bulgartransgaz. He stated he would not resign despite the ongoing investigation. He has affirmed his commitment to assist in the completion of the public procurement investigation.
Malinov has testified twice in the case, once in October 2024 and again in February 2025.
Malinov’s absence on March 24, was due to hospitalization.
Is Vladimir Malinov suspected of wrongdoing?
According to Malinov, the company has not committed any violations. He has stated that all actions were conducted according to company regulations.He maintains that there are no violations and crimes committed regarding the conduct and agreement of this public procurement.
What is the status of the European funding for the project?
European funding for the project remains intact. On March 13, an additional agreement was signed, preserving the 78 million EUR in European funding and extending the deadline for its use until the end of 2027.
What is the current progress of the Chiren gas storage expansion?
The project has seen progress, specifically regarding the gas pipeline and compressor and measuring stations.
The gas pipeline connecting chiren to the Bulgartransgaz gas transmission network was commissioned on November 22, 2023.
New compressor and measuring stations are operational as of March 26.
Storage capacity will reach 650 million cubic meters by May 1, the start of the gas season.
* The outcome of the new public procurement for three plus three wells, involving three consortiums including U.S.companies, will be known by April 11.
what are the key milestones and expected completion dates for the Chiren gas storage project?
The project has already achieved essential milestones. Key dates and targets are listed as follows:
| Milestone | Date | Status |
| :——————————————— | :————— | :—————– |
| Gas pipeline completion | November 22, 2023 | Completed |
| Compressor and measuring stations operational | March 26, 2025 | Operational |
| Storage capacity to 650 million cubic meters | May 1, 2025 | Expected |
| New public procurement outcome | April 11, 2025 | Anticipated |
| Project Completion | End of 2027 | Targeted Completion |
Have there been any allegations of political interference or pressure?
Malinov denied any pressure in the selection of the contractor and stated he was unaware of any alleged requests for money from subcontractors. He asserts that his appointment was not politically motivated,and no political force has applied pressure on him.
