Updated January 3, 2024
Bulgaria: An Overview
After decades of single-party communist rule and a difficult
of the euro as Bulgaria’s currency, join Europe’s Schengen
transition period in the 1990s, Bulgaria joined NATO in
area of free movement, and counter Russian influence in
2004 and the European Union (EU) in 2007. Bulgaria’s
Bulgaria, particularly in the security sector.
Black Sea location and NATO and EU memberships make
Bulgaria’s political scene remains contentious. The
it an important U.S. partner, particularly in the wake of
Russia’s full-scale invasion of Ukraine starting in 2022.
governing parties share pro-Western orientations but are
political rivals. The government’s relations with the
Members of Congress may monitor several issues in
Bulgaria with implications for the U.S.-Bulgaria strategic
opposition and President Radev also are fraught, including
partnership, including energy security, military
over such issues as energy and military aid to Ukraine.
modernization, building resilience to external authoritarian
Figure 1. Bulgaria at a Glance
influence, and combating corruption and organized crime.
Domestic Overview
Bulgaria is a parliamentary republic. Prime Minister
Nikolai Denkov leads a pro-Western government
comprising Denkov’s We Continue the Change (PP),
Democratic Bulgaria (DB), and the Citizens for European
Development of Bulgaria-Union of Democratic Forces
(GERB-SDS) coalition. In spring 2024, the post of prime
minister is to rotate to GERB-SDS. President Rumen Radev
was reelected to a second term in 2021 with support from
the Bulgarian Socialist Party (BSP), which some observers

Source: CRS figure using CIA World Factbook and IMF data.
consider to have a more pro-Russian orientation.
Bulgaria has experienced persistent political instability in
Corruption, Organized Crime, and the Rule of Law
recent years. A wave of anti-corruption protests in 2020 and
Corruption, organized crime, and rule-of-law challenges
2021 weakened then-Prime Minister Boyko Borisov and his
intensified during Bulgaria’s transition in the 1990s. Citing
political party, GERB, which had ruled the country for most
concern that these issues had not been resolved when
of the preceding 12 years. Bulgaria has held five
Bulgaria joined the EU in 2007, Brussels continued to
parliamentary elections since April 2021. GERB and BPS,
monitor reforms through the Cooperation and Verification
the two largest parties in the 2010s, lost some support to
Mechanism (CVM). The CVM closed in late 2023, when
parties that ran on pro-reform platforms, such as DB and
the EU assessed that Bulgaria met benchmarks in judicial
PP, as well as to the populist There Is Such a People (ITN)
reform and in combating corruption and organized crime.
and the ultranationalist, pro-Russian Revival. The
Movement for Rights and Freedom (DPS), which is mostly
Some observers assess that corruption and organized crime
backed by ethnic Turkish voters, has had stable support.
remain significant barriers to good governance and
economic growth. Bulgaria is consistently among the worst-
Since 2021, a mix of caretaker and largely pro-Western
scored EU member states in Transparency International’s
governments has presided over Bulgaria; polarization and
Corruption Perceptions Index. The U.S. State Department’s
close election results complicated government formation
2023 Investment Climate Statement for Bulgaria assesses
following each parliamentary election. PP and DB
that “high-level corruption, particularly in public
expressed hesitance to govern with GERB and other former
procurement, remains a serious concern.” The Biden
ruling parties, citing corruption concerns, but ultimately
Administration has imposed sanctions on several prominent
struggled to build coalitions without them. Kiril Petkov, a
Bulgarians for corruption (see below).
cofounder of PP, led a coalition government comprising PP,
BSP, ITN, and DB from December 2021 to August 2022.
Economy
This government oversaw Bulgaria’s early response to
The World Bank classifies Bulgaria as an upper-middle-
Russia’s war on Ukraine but grappled with internal
income country. Bulgaria’s strategic location, relatively low
divisions over various domestic and foreign policy issues.
business costs, and EU membership have attracted
investment in such areas as information technology and the
In Bulgaria’s April 2023 parliamentary election, GERB-
automotive industry. Gross domestic product (GDP)
SDS won 26.5% of the vote, followed by a PP-DB coalition
contracted by 3.9% in 2020 but grew by 7.6% in 2021.
(24.6%), Revival (14.2%), DPS (13.8%), BSP (8.9%), and
Growth slowed to 3.4% in 2022 and an estimated 1.7% in
ITN (4.1%). Following difficult negotiations, PP-DB and
2023, due in part to the economic impacts of Russia’s war
GERB-SDS agreed to a rotational government (initially
on Ukraine. Bulgaria is to receive €5.7 billion in EU
under Denkov) and a pro-EU program to finalize adoption
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Bulgaria: An Overview
COVID-19 recovery and resilience grants, supplementing
in 2022, it moved to purchase eight additional F-16 aircraft.
other EU funds for Bulgaria.
In 2023, parliament approved the purchase of 183 U.S.
Stryker vehicles for an estimated cost of $1.5 billion.
Bulgaria is among the poorest EU member states, although
living conditions improved alongside EU integration.
U.S.-Bulgaria Relations
Barriers to growth include infrastructure deficiencies,
During the 1990s and 2000s, the United States provided
corruption, and an unpredictable legal environment.
foreign aid and diplomatic support for Bulgaria’s domestic
Demographic decline also poses a challenge; peaking at
transition and integration into NATO and the EU. The
nearly 9 million in the 1980s, the population had decreased
United States and Bulgaria maintain good relations.
to 6.5 million by 2021.
Foreign and Security Policy
Security Cooperation
In 2006, the United States and Bulgaria signed a Defense
Closely aligned with the Soviet Union during the Cold War,
Cooperation Agreement allowing joint use of several
Bulgaria adopted a Euro-Atlantic foreign policy in the
Bulgarian military facilities. In 2020, the two countries
1990s. Alongside Bulgaria’s EU and NATO accession,
agreed to a 10-year military cooperation road map. Since
Bulgarian leaders generally sought to preserve good
2022, the United States has deployed additional troops and
relations with Russia. Pro-Russian sentiment persists
equipment to Bulgaria, including as part of the new NATO
among certain political parties and segments of Bulgarian
battle group. The United States provided close to $240
society. Some analysts assess that Bulgaria’s corruption
million in security assistance to Bulgaria from FY2017 to
challenges, weak media climate, and energy dependency
FY2022. U.S. security assistance to Bulgaria prioritizes
expose the country to Russian influence and hybrid threats.
military modernization, Black Sea maritime domain
Russia’s ongoing invasion of Ukraine has posed security
awareness, cybersecurity, and interoperability with NATO.
risks to Bulgaria. The Petkov government, which was in
Sanctions
office for the first half of 2022, backed EU sanctions
against Russia and, according to Petkov, discretely supplied
The Biden Administration has used sanctions to address
fuel and ammunition to Ukraine. The Petkov government
corruption in Bulgaria. In June 2021, the Treasury
also agreed to host a new NATO battle group, expelled
Department sanctioned three Bulgarian individuals and 64
dozens of Russian diplomats on suspicion of espionage,
associated entities for corruption under the Global
welcomed Ukrainian refugees, and sought to rapidly
Magnitsky Human Rights Accountability Act (P.L. 114-
diversify natural gas imports (see below). Prime Minister
328, Title XII, Subtitle F; as implemented through
Denkov, who leads the current pro-Western government,
Executive Order 13818). In February 2023, Treasury
has expressed unequivocal support for Ukraine and pledged
sanctioned five current and former Bulgarian officials and
to end what he described as an “eyes wide shut” approach
five entities for corruption under Global Magnitsky.
in Bulgaria to Russian interference. Bulgarian authorities
Treasury’s press release states that the “diverse profiles and
are weighing measures to halt Russian crude oil imports
longstanding prominence in Bulgarian politics [of the
earlier than planned (Bulgaria is exempt until late 2024
sanctioned individuals] illustrate the extent to which
from an EU ban on Russian oil imports) and pressure
corruption has become entrenched across ministries, parties,
Russia’s Lukoil to sell its oil refinery in Bulgaria.
and state-owned industries.” Under the Biden
Administration, the State Department also imposed travel
The war has amplified foreign policy differences over
bans on several Bulgarian officials for corruption under
Russia. Some of the Denkov government’s responses to the
Section 7031(c) of annual Department of State, Foreign
war have faced opposition in parliament or from President
Operations, and Related Programs appropriations
Radev. The issue of military aid to Ukraine is particularly
legislation (P.L. 117-328, Division K, for FY2023).
contentious. Ukrainian officials criticized Radev’s position
that such transfers will prolong the conflict. In December
Energy Cooperation
2023, parliament authorized the transfer of 100 Soviet-era
The United States supports Bulgaria’s steps to end
armored vehicles to Ukraine, overriding Radev’s veto.
dependency on Russian nuclear fuel supplies, crude oil, and
Black Sea security is a key issue for Bulgaria. Bulgarian
natural gas, as well as its contributions to energy
officials have expressed concern about Russia’s ambitions
diversification in southeastern Europe. U.S. liquefied
to “dominate the Black Sea” and direct security threats
natural gas (LNG) helped Bulgaria cope with a gas supply
stemming from the war, such as drone debris and sea mines.
crisis triggered when Russia’s Gazprom cut deliveries in
In late 2023, Bulgaria, Romania, and Turkey announced an
April 2022. U.S.-backed regional projects, such as an
initiative to clear sea mines. The Denkov government
interconnector with Greece enabling gas imports from
supports NATO initiatives in the Black Sea region and
Azerbaijan and Bulgaria’s stake in a new LNG terminal in
Bulgaria joining the European Sky Shield Initiative.
Greece, are expected to help diversify supplies. The U.S.
International Development Finance Corporation has
Bulgaria has a comparatively large defense industry and
approved financing of up to $365 million for an expansion
inventory of legacy Russian equipment. Since 2022,
of Bulgaria’s underground gas storage facility. In 2023,
Bulgarian officials have pledged to revive long-delayed
Bulgaria signed memoranda of understanding with U.S.
equipment upgrades and enhance defense capabilities.
firm Westinghouse on expanding the country’s sole nuclear
Bulgaria spent an estimated 1.84% of its GDP on defense in
power plant.
2023 and plans to meet NATO’s 2% target in 2024. In
Sarah E. Garding, Analyst in European Affairs
2019, Bulgaria agreed to purchase eight F-16 fighter jets
IF11725
from the United States at an estimated cost of $1.67 billion;
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Bulgaria: An Overview


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https://crsreports.congress.gov | IF11725 · VERSION 6 · UPDATED

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