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The darker side of cheap gas deals from state owned companies

St Niculae’s Gas Deal – so far, the iceberg’s tip

When they analyzed the subsidies with cheap gas that the companies from Ioan Niculae’s Interagro Group benefited in the past years, NGO analysts were threatened with a lawsuit.  In fact, today’s scandal concerning the discount granted on top of what a generous law allows is just the tip of the iceberg: the key problem is that state owned companies supply cheap gas, in non-competitive terms and untransparent contracts with priviledged players.  In many cases, such deals are done in a perfectly legal manner, by special laws, but without a transparent support scheme to allow everybody to see its true cost.  We calculated earlier that the loss for the society from support schemes with cheap gas was the equivalent to 40 USD per household.  Is it worth the price, or should we wish Mr. Niculae “Good Riddance” in Bulgarian next time he threatens to relocate his business?

Read the brief here.

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