Bulgarian Council of Ministers approves draft agreement with Greece on IGB

Bulgarian Council of Ministers has approved the draft intergovernmental agreement with Greece on the interconnector Greece-Bulgaria (IGB), which envisages transportation of Azerbaijani gas to Bulgaria, Trend reports.

This intergovernmental agreement will establish a tax framework for the project, Bulgarian media reports citing the Council of Ministers.

'The intergovernmental agreement stabilizes corporate tax rates in Bulgaria and Greece for 25 years. The document provides for the avoidance of double taxation. The proposed draft intergovernmental agreement will introduce a fixed corporate tax regime that will be applied for 25 years from the beginning of the commercial operation of the interconnector. A fixed tax regime implies a predictable amount of expenses for investors, the report reads.

The conclusion of the intergovernmental agreement is subject to ratification by the parliaments of Greece and Bulgaria.

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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