Updated June 21, 2021
Bulgaria: An Overview
Bulgaria is a Southeastern European country located along
Although observers note some progress in Bulgaria’s anti-
the Black Sea. After decades of single-party communist
corruption efforts, the core challenges have persisted across
rule and a turbulent transition period during the 1990s,
successive governments. To date, no senior officials have
Bulgaria joined NATO in 2004 and the European Union
been convicted of corruption. For several years, Bulgaria
(EU) in 2007. The United States cooperates with Bulgaria
has ranked last among EU member states in Transparency
on a range of security issues but also has raised concerns
International’s annual Corruption Perceptions Index. The
over corruption and the rule of law.
U.S. State Department’s 2020 Investment Climate
Domestic Background
Statement for Bulgaria describes corruption as “endemic,
particularly on large infrastructure projects and in the
Bulgaria is a parliamentary democracy. The prime minister
energy sector” and “in public procurement and use of EU
leads the government, and a directly elected president
funds.” The influence of oligarchs and other non-state
serves as head of state. The National Assembly (Narodno
actors over some state institutions also is a concern.
sabranie) is a unicameral legislature with 240 members.
Rule-of-law challenges and a weak media environment may
After 12 years of near-continuous rule under Prime Minister
complicate efforts to combat corruption. The judiciary is
Boyko Borisov and his center-right Citizens for European
one of Bulgaria’s least-trusted institutions, and analysts
Development of Bulgaria (GERB), Bulgaria entered into a
assert that some judicial bodies and processes have been
period of uncertainty following parliamentary elections held
compromised. Media watchdog groups caution that
on April 4, 2021. GERB and its main rival, the Bulgarian
Bulgaria’s media environment is deteriorating. Bulgaria had
Socialist Party (BSP), placed first (26%) and third (15%),
the worst score among EU member states in Reporters
respectively, but with their weakest results in years. The
Without Borders’ 2020 World Press Freedom Index.
Movement for Rights and Freedoms, a party predominantly
supported by ethnic Turkish voters, won 11% of the vote.
Figure 1. Bulgaria: Basic Facts
Propelled by broad dissatisfaction with the status quo, three
new groupings together won around one-third of the vote.
The populist There Is Such a People (ITN), led by singer
and TV entertainer Slavi Trifonov, placed second (18%).
Democratic Bulgaria and Stand Up, Mafia Out, which
participated in a wave of anti-corruption protests in 2020,
won nearly 15% of votes combined.
With no party able to form a coalition, in May 2021,
President Rumen Radev appointed a caretaker government,
Source: Map and graphic created by CRS.
led by Stefan Yanev, and called early parliamentary
elections for July 11, 2021. New allegations of corruption
Widespread public anger over corruption has fueled several
and malfeasance leveled against the former Borisov
major protest cycles. Most recently, a months-long wave of
government, including claims that state security agencies
protests broke out in 2020 in response to corruption
wiretapped GERB’s rivals ahead of the April 4 election,
allegations against the Borisov government. These protests
have compounded Bulgaria’s current political turmoil. In
appear to have weakened GERB—and boosted new
addition, Bulgaria is scheduled to have presidential
opposition forces—ahead of the April 2021 election.
elections in late 2021. Radev, who is backed by BSP, has
announced that he will seek a second term.
On June 2, 2021, the U.S. Department of the Treasury
sanctioned three Bulgarian individuals for involvement in
Corruption and Rule-of-Law Concerns
corruption, as well as 64 entities in their networks, under
Corruption, organized crime, and rule-of-law challenges
Executive Order 13818, which implements the Global
intensified during Bulgaria’s turbulent economic and
Magnitsky Human Rights Accountability Act (Title XII,
political transition in the 1990s. Due to concern that these
Subtitle F of P.L. 114-328). According to Treasury, these
issues had not been resolved at the time of Bulgaria’s EU
designations are the largest-ever action taken on a single
accession in 2007, Brussels continues to monitor the
day under the global Magnitsky program. The State
country’s reforms through a transitional Cooperation and
Department concurrently designated five current and former
Verification Mechanism (CVM). Although the CVM has
officials (two of whom were among those designated by
guided some institutional reforms, many analysts question
Treasury) for involvement in significant corruption under
the EU’s overall effectiveness in promoting the rule of law
Section 7031(c) of the Department of State, Foreign
in Bulgaria. Some also assert that EU development funds
Operations, and Related Programs Appropriations Act,
2021 (P.L. 116-260). Some of the sanctioned individuals
have indirectly enabled corruption.
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Bulgaria: An Overview
are oligarchs regarded as behind-the-scenes powerbrokers
United States and Bulgaria continue to have good relations
in Bulgarian politics.
and cooperate on various issues. Members of Congress may
be interested in Black Sea and energy security issues
Many Bulgarian anti-corruption activists and politicians
relating to Bulgaria, as well as anti-corruption efforts.
welcomed the designations. They garnered significant
attention in Bulgaria, in part because they were announced
Security Cooperation
during the current parliamentary election cycle, where
Bulgaria’s location and NATO membership give it strategic
corruption and state capture have been key campaign
importance for an array of U.S. security concerns about
themes. Bulgaria’s caretaker government moved to blacklist
Russia, the Black Sea, and conflicts in the Middle East. In
the individuals and entities designated by the United States.
2006, the United States and Bulgaria signed a Defense
Economy
Cooperation Agreement that allows for joint use of four
Bulgarian military bases and U.S. troop rotations. The
The World Bank classifies Bulgaria as an upper-middle-
United States has invested over $50 million to upgrade
income country. Bulgaria experienced robust GDP growth
these facilities. In October 2020, the two countries agreed
in the 2000s, following economic reforms and EU
to a 10-year road map for continued military cooperation.
integration. The economy struggled after the 2008 global
The United States also supports Bulgaria’s plans to replace
financial crisis, but recent annual GDP growth has been
its Soviet-era military equipment. In 2019, Bulgaria
around 3%-4%. As elsewhere, the COVID-19 pandemic has
purchased eight F-16 fighter jets from the United States for
adversely affected the Bulgarian economy.
$1.3 billion—its largest military expenditure in decades.
Although economic conditions have improved significantly
Bulgaria’s estimated 2021 defense expenditure is at 1.56%
since the 1990s, Bulgaria has among the EU’s lowest GDP
of GDP, somewhat short of NATO’s 2% target.
per capita levels. A third of its population is at risk of
The United States and Bulgaria cooperate on capacity-
poverty or social exclusion. Bulgaria also has one of the
building programs to confront additional security threats.
world’s fastest-shrinking populations due to emigration and
Bulgaria is located along the EU’s external border and in a
low fertility rates; after peaking at nearly 9 million in the
major transit region for illicit trafficking in persons, arms,
1980s, its population decreased to about 7 million by 2019. narcotics, and contraband.
Foreign Relations
Foreign Assistance
Closely aligned with the Soviet Union during the Cold War,
Following Bulgaria’s 2007 EU accession, most U.S.
Bulgaria adopted a Euro-Atlantic foreign policy orientation
assistance has targeted security issues, including
in the 1990s. It has contributed troops to NATO, EU, and
modernizing the Bulgarian military and increasing its
coalition missions in Afghanistan, Bosnia and Herzegovina,
interoperability with NATO forces, among other priorities.
Iraq, and elsewhere and is one of three NATO allies in the
The United States has provided over $160 million in
strategic Black Sea region.
security assistance to Bulgaria since 2016.
At the same time, many Bulgarian leaders have sought to
Energy Security and Potential U.S. Sanctions
maintain good relations—and avoid friction—with Russia,
Bulgaria’s
The United States supports Bulgaria’s ambitions of
neighbor across the Black Sea. Many Bulgarians
becoming a regional energy transit hub. Bulgaria currently
hold favorable views of Russia, due in part to cultural and
relies on Russian energy imports—a dependency that partly
historical ties. The two countries have significant trade and
stems from infrastructure limitations. Bulgaria has pursued
investment links, particularly in the energy sector. Some
projects aimed at diversifying energy supplies, including a
analysts caution that endemic corruption, bilateral energy
gas interconnector with Greece that would enable imports
links, and alleged Russian ties to some political parties and
from Azerbaijan and a stake in a planned liquefied natural
interest groups may invite greater overall Russian influence
gas terminal in Greece. Bulgaria is part of the Three Seas
in Bulgarian affairs. According to Treasury, a Bulgarian
Initiative, a U.S.-backed platform among EU member states
oligarch it designated for involvement in corruption in June
in Central Europe aimed at expanding regional
2021 sought to “create a channel for Russian political
leaders to influence Bulgarian government officials.”
connectivity, including energy infrastructure.
At the same time, U.S. officials have cautioned that some
Relations between Bulgaria and Russia occasionally have
energy projects, particularly the extension of Russian state-
been strained over energy issues and Bulgaria’s approval of
owned firm Gazprom’s TurkStream gas pipeline across
EU sanctions against Russia. Since 2019, Bulgaria has
Bulgaria, could increase reliance on Russia. In July 2020,
expelled several Russian diplomats on espionage charges.
the U.S. State Department issued updated public guidance
In March 2021, prosecutors charged six Bulgarians,
on Section 232 of the Countering America’s Adversaries
including current and former Ministry of Defense and
Through Sanctions Act (P.L. 115-44) clarifying that
military intelligence officials, on suspicion of passing
discretionary sanctions may apply to certain activities
classified information to Russia concerning Bulgaria’s
related to TurkStream’s European extension (second line)
defense plans, NATO, the EU, and the United States.
and Gazprom’s Nord Stream 2 project.
U.S.-Bulgaria Relations
Sarah E. Garding, Analyst in European Affairs
During the 1990s and 2000s, the United States provided
foreign aid and diplomatic support for Bulgaria’s domestic
IF11725
transition and integration into NATO and the EU. The
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Bulgaria: An Overview
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