Novinite.com
14 May 2025

Elliott Investment Management, led by billionaire Paul Singer, is exploring the possibility of acquiring a stake in a set of Bulgarian infrastructure assets, which includes a key extension of the TurkStream gas pipeline that connects Russia with Europe, BGNES and The Wall Street Journal reported. The hedge fund is also looking into acquiring data centers, cables, and other infrastructure components tied to the pipeline, according to reports from sources familiar with the deal.

The deal is still in its early stages, with no formal agreement yet in place, though Elliott recently signed a non-disclosure agreement with Bulgartransgaz, the state-owned Bulgarian gas transmission operator. This development follows a meeting last month between Elliott representatives and high-ranking Bulgarian officials in Sofia. The company is also considering a potential refinancing of Bulgartransgaz's debt as part of the broader deal. The details on the size and scope of the investment remain unclear.

TurkStream and the Context of Russian Gas Supply

The TurkStream pipeline is currently Russia's only operational gas link to Europe, especially important as Russia's larger pipelines to the continent have been disrupted or closed since its invasion of Ukraine. The pipeline runs across the Black Sea, reaching Turkey and then branching out to countries like Hungary and Slovakia. Historically, Russia was the largest supplier of natural gas to Europe, but following the war in Ukraine, Moscow's share of gas supplies to Europe has significantly dropped from 45% to around 19%.

The idea behind the potential investment is to bolster Russia's energy presence in Europe, which could be achieved with American involvement. This strategy has been suggested as a model for potentially reviving Russian energy ties to the West, particularly through American investor support. In fact, the U.S. administration has also made energy-related deals a central focus in its interactions with Moscow regarding peace in Ukraine. This includes discussions around restoring the Nord Stream pipeline, which was sabotaged in 2022.

Elliott's involvement in the TurkStream extension in Bulgaria is not solely about the pipeline. The hedge fund sees it as part of a larger investment package that also involves other infrastructure assets, including data-related facilities. This broader investment could be seen as a way to protect the pipeline from sanctions on Russian energy and to contribute to Bulgaria's efforts to expand its energy network.

Political and Strategic Implications for Bulgaria and Europe

Bulgaria, a member of both NATO and the European Union, often finds itself walking a fine line between historical ties to Russia and its Western commitments. The potential investment by an influential U.S. hedge fund like Elliott could strengthen Bulgaria's position in its dealings with Washington, particularly in relation to its energy infrastructure. There is also an understanding that American backing could shield the project from the impact of further sanctions targeting Russian energy.

Meanwhile, the Biden administration has made it clear that it continues to support the export of U.S. liquefied natural gas (LNG) to Europe, especially to markets that align with American interests. This is part of a broader shift away from reliance on Russian gas, with some European nations, like Slovakia and Hungary, still heavily dependent on Russian supplies. For Elliott, the Bulgarian pipeline investment fits into its wider strategy, as the firm has a history of targeting the oil and gas sector. Its stake in BP, for example, has led to active campaigns pushing the British energy giant to boost production, while also advocating for changes at companies like Phillips 66.

A Potential Windfall for Elliott

For Elliott, the Bulgarian TurkStream deal presents an opportunity for significant returns. Bulgaria earns around 0 million annually from Russian gas supplies through the TurkStream network, a figure that has increased in recent years as other Russian pipelines have shut down. This infrastructure deal could also serve as a model for similar initiatives in other countries, such as Ukraine and Germany, potentially enhancing Europe's energy dependence on Russian supplies once again.

Elliott, which manages over billion in assets, has long been a powerful player on Wall Street, known for taking large stakes in major corporations and pushing for changes that boost shareholder value. The hedge fund has a history of targeting companies like SoftBank and Starbucks, and its political contributions to U.S. Republican causes, including those tied to former President Donald Trump, have further cemented its reputation as an influential force in both business and politics.