Economy Minister Roumen Ovcharov is negotiating in Moscow the supply and transit passage of Russian natural gas, as well as economic partnership between Russia and Bulgaria.

Russia is interested in the signing of a long-term agreement for gas supply with Bulgaria, Russian energy minister Viktor Khristenko said. Khristenko and Ovcharov discussed contracts for transit supplies passage through Bulgaria after 2010.

Khristenko said in the future Russia would like to remove the barter clause from the supply agreement with Bulgaria. The two ministers also discussed the provision of nuclear fuel for Kozlodui nuclear power plant.

Ovcharov said Bulgaria is still likely to seek alternative energy sources. Bulgaria's main gas supplier, Gazprom demands changes to the current contract, the Bulgarian National Radio reported. Economists said if Bulgaria accepts the new conditions, gas prices in the country will increase by at least 30 per cent.