Bulgaria and Russia would sign a new natural gas supply and transit passage agreement on December 18 2007, mediapool.bg reported. The new agreement will be valid until 2030.

A previous agreement, efficient until 2010, already exists but Russian energy company Gazprom demanded renegotiations. Bulgaria was paying three times less than EU countries, according to the previous agreement, Gazprom representatives said.

Gas prices in Bulgaria would rise by less than 10 per cent starting April 2007, Economy and Energy Minister Roumen Ovcharov said.

Both countries agreed on gradual increase over the next six years, Ovcharov told Bulgarian National Radio (BNR).

Russia is also involved in several energy projects concerning Bulgaria. These include the construction of Belene nuclear power plant and the setting up of the Bourgas- Alexandroupolis oil pipeline.

Russian company Atomstroyexport will construct Belene while Bourgas- Alexandroupolis pipeline involves oil transfer from Russia to Greece through Bulgaria. Gazprom takes part in the both projects either directly or through other associated companies.