On December 6, Economy and Energy Minister Roumen Ovcharov will present to the ruling coalition council a draft agreement between Bulgaria and Russian energy company Gazprom.

The project came into existence after nearly one year of negotiations, Bulgarian National Radio reported.

It deals mainly with the supply and transit passage of natural gas through Bulgaria for the period until 2030.

In case the coalition council approves the draft, it will serve as the basis for change of the current supply agreement. The agreement valid at the moment is applicable until 2010.

Ovcharov said that the current agreement benefited Bulgaria and officials had to decide whether to insist on these conditions or to try securing a long-term contract that ensured the economic stability of the country.

Both options had pros and cons, said Ovcharov.

In the end of 2005 Gazprom asked for a change in the current agreement. Accepting the Russian terms would have led to a 40 per cent increase in the price of natural gas on the Bulgarian market, the national radio reported.

Talks between Bulgaria and Gazprom began in February 2006, after Ovcharov visited Moscow. The Russian ultimatum changed through a series of talks. Initial demands for transit passage agreement changes turned to willingness for a partnership in the spheres of transit passage and provision of natural gas.