Greece, Bulgaria to ink agreement on tax treatment of IGB
Baku, Azerbaijan, Sept.14
By Leman Zeynalova – Trend:
Greece and Bulgaria will sign an agreement on the tax treatment of Interconnector Greece-Bulgaria (IGB) that envisages transportation of Azerbaijani gas to Bulgaria.
The Council of Ministers approved the position of Bulgaria according to which the Minister of Energy, coordinated with the competent authorities of Bulgaria, will hold negotiations with the Greek government for the preparation and signing of an Intergovernmental Agreement on the tax treatment of IGB, said a message from ICGB AD, the company engaged in the construction of IGB.
“The signing of an Intergovernmental Agreement between the Republic of Bulgaria and the Hellenic Republic regarding the tax treatment of the project for the Gas Interconnection between Greece and Bulgaria is an important element in the implementation of the project. For effective negotiations between the two countries, the Council of Ministers today approved the basic terms of the future agreement as a position of the Bulgarian state in order to prepare, coordinate and finalize the future Intergovernmental Agreement,” said the message.
Bulgaria's adopted position on the future Intergovernmental Agreement between the two countries will be presented by the Minister of Energy to the upcoming CESEC Member States' High Level Meeting on Interconnection Gas Connectivity in Central and Southern Europe as a key milestone in the progress of the project and a condition for starting its realization.
IGB is a gas pipeline, which will allow Bulgaria to receive Azerbaijani gas, in particular, the gas produced from Azerbaijan's Shah Deniz 2 gas and condensate field. IGB is expected to be connected to TAP via which gas from the Shah Deniz field will be delivered to the European markets.
The initial capacity of IGB will be 3 billion cubic meters of gas.
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