The Bulgarian government has suggested passage of a law withdrawing from the Energy Charter Treaty (ECT).
On 13 February 2026, the Bulgaria government adopted Decision No. 175, which proposes the adoption of a law that would denounce the ECT, a multilateral trade and investment agreement for the energy sector, which Bulgaria signed in 1994. The Decision also proposed denouncing the Protocol on Energy Efficiency and related environmental agreements.
Background
The ECT has been in force Bulgaria since 16 April 1998 after the initial signing in 1994. Bulgaria’s participation in this Treaty is regulated by the Act on Ratification of the Treaty to the European Energy Charter and the Protocol on Energy Efficiency and Related Environmental Aspects (State Gazette, No. 64 of 1996).
Since 2023, the EU and Euratom have taken steps to withdraw the from the ECT, leading to the adoption of Council Decision (EU) 2024/1638 of 30 May 2024 on the withdrawal of the Union from the ECT and Council Decision (EU) 2024/1677 of 30 May 2024 approving the withdrawal of the European Atomic Energy Community from the ECT.
These EU Council decisions led to Bulgaria’s 13 February issuance of Decision No. 175.
The Energy Charter Treaty is an international treaty as defined by the Law on International Treaties of the Republic of Bulgaria (LMTR), which means the following decisions are applicable to it: Art. 85 of the Constitution of the Republic of Bulgaria, the Vienna Convention on the Law of Treaties, ratified by Decree No. 503 of the State Council of 1987 (State Gazette, issue 14 of 1987) and in force for Bulgaria since 21 May 1987, and the LMTRB.
As a result, to withdraw from the ECT Bulgaria must issue written notification to the depositary after the completion of the national procedures for the adoption of the relevant acts by the Bulgarian government and Parliament. By denouncing the ECT, Bulgaria will also denounce the Protocol on Energy Efficiency and related environmental agreements.
In an arbitral award issued on 5 January 2024, an international arbitration tribunal found that Bulgaria had infringed the ECT and ordered Bulgaria to compensate an international renewable energy investor for losses suffered due to the modifications of the Bulgarian renewable energy support scheme. The compensation amounted to EUR 61.04 million plus interest.
Bulgaria has not paid the awarded compensation.
For more information on Bulgaria’s withdrawal from the ECT, contact your CMS client partner or the CMS experts who contributed to this article.
