Balgarianovinite.com Deputy Prime Minister and Minister of Economy, Investment and Industry Alexander Poulev said on Wednesday that there is no contract or framework agreement with German company Rheinmetall on a gunpowder factory construction near Sopot, only “understandings”.
Poulev was answering a question by Continue the Change MP Bogdan Bogdanov concerning the plans announced in October 2025 by the Rosen Zhelyazkov Cabinet for Rheinmetall and VMZ Sopot to build such a facility.
Poulev said Germany is one of Bulgaria’s key economic and trade partners and that Bulgaria wants effective cooperation with it. However, he said the project is complicated, including because of technical issues with the site, and that a full review of its main parameters is needed.
According to Poulev, feedback from the legal teams shows that Bulgaria’s interests were not sufficiently protected. He said Bulgaria had accepted the German side’s terms without seeking to make certain demands, such as reducing licensing payments or ensuring the participation of Bulgarian subcontractors in the supply chain.
Another major problem is financing, the Economy Minister said. He noted that resources under the SAFE mechanism amount to only 10% to 15% of the necessary funding, which is far from sufficient given Bulgaria’s commitment of EUR 400 million. During the talks, potential capital expenditure of EUR 400 million from the state budget had been envisaged.
“I do not know what the capital breakdown in the budget was at the time, but the funds are currently not available. Financing will be difficult. New EU funds will need to be activated, programmes will have to be transformed, and there are more questions than answers. We have informed the German side that we will face difficulties. The entire plan must be transformed, which will take considerable time,” Poulev said.
Bogdanov said the Minister’s answer made it clear that the priority investment was not a real project but more of a marketing exercise without secured financing. He added that VMZ has significant capacity and can produce NATO-standard ammunition, whether with Rheinmetall or through smaller investments. Economy Minister: No Contract with Rheinmetall for Gunpowder Factory near Sopot, Project Funding Difficult 2026 THE NEWS FROM BULGARIA – NEWS AGENCY 2009-2025 2026-07-08 19:10:43 Latest news World news Country news Most important news latest news most important latest of the day Justice Petar Nizamov Feathers Petar Nizamov- Feathers Justice bg iustitia.bg iustitia iusticia usticia investigation Burgas Bulgaria news news of the last hour news of the day news of today Bulgaria news The news from Bulgaria blitz news top news most important most commented latest news Boyko Borisov news weather coronavirus news news weather facebook youtube facebook instagram news today news of the last minutes news today today news news bg news leading news hot news bg news site for news all news news bg news of the last hour latest latest news bg news of today news today news today news of the last hour latest news today news bg news news 24 hours news vesti bg novini news world bird bg bivol bg bivol trud bg novini latest news today novinite bg news hello bulgaria political party coat of arms delyan peevski scandalous Bulgarian National Television Free Europe Television scandal exclusive live tv live right now tv tv online tv program bg live now tv news online tv online live court Burgas court Burgas district court Burgas court Burgas district court Burgas district court Burgas appellate court Burgas prosecutor Burgas prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Prosecutor General Ivan Geshev Prosecutor Geshev Tsatsarov Ministry of Internal Affairs Burgas ODMR Burgas ODPR Burgas police Burgas district police Burgas prosecutor Tsatsarov SGS cases Varna court chairman of the SGS court decisions on civil cases decisions on cases Plovdiv court decision of the court decisions cases Varna court criminal cases district district court decisions work in the court SGS chairman of the SGS judges Sofia court post judges Plovdiv court Plovdiv judges Plovdiv Supreme Court Inspectorate Supreme Court Supreme Judicial Council lawyer lawyer criminal cases lawyer civil cases lawyer marriage cases lawyer administrative criminal law criminal process civil law civil process administrative law constitutional law