Financial Crime World

Bulgarian Officials Divert Contracts to Personal Interests

Sanctions Imposed on Corrupt Bulgarian Officials and Entities

The United States has taken a decisive step against corruption by imposing sanctions on several Bulgarian officials and entities accused of engaging in corrupt practices, including diverting service contracts for the Kozloduy Nuclear Power Plant (KNPP) to their own business interests.

Allegations of Corruption

According to a statement from the US Department of the Treasury’s Office of Foreign Assets Control (OFAC), the sanctioned individuals include:

  • Ovcharov
  • Nikolov
  • Genov, who allegedly accepted bribes in exchange for guarantees of KNPP contracts. Even after leaving his position as Executive Director of KNPP, Genov continued to solicit bribes to facilitate the reconsideration of contract awards.

Other Sanctioned Individuals

The sanctions also target:

  • Nikolay Simeonov Malinov, a former member of parliament and leader of the pro-Russian lobby group Russophiles National Movement. Malinov was arrested in 2019 on charges of espionage for Russian-backed interests and later bribed a Bulgarian judge to allow him to travel to Russia.
  • Vladislav Ivanov Goranov, a former Minister of Finance who participated in a corruption scheme that deprived the Bulgarian government of tens of millions of euros in tax revenues. The scheme benefited Bulgarian oligarchs involved in the gambling industry.

Sanctions Under Executive Order 13818

The sanctions were imposed under Executive Order 13818, which targets foreign persons responsible for or complicit in corruption, including bribery and embezzlement.

Impact on Corrupt Officials

The move is seen as a blow to the corrupt officials who have undermined trust in Bulgaria’s government and economy. The sanctions will also prevent them from accessing funds in US banks or conducting financial transactions with American entities.

“We hope that these sanctions will serve as a deterrent to others who would seek to line their pockets at the expense of the Bulgarian people,” said a senior US official.

Restrictions on Sanctioned Individuals and Entities

The designated individuals and entities are subject to a range of restrictions, including:

  • The blocking of their property and interests in the United States
  • The prohibition on transactions with US persons or within the United States
  • Financial institutions and other persons that engage in certain transactions or activities with the sanctioned entities and individuals may also be exposed to sanctions or enforcement action

Part of a Broader Effort

The sanctions are part of a broader effort by the United States to combat corruption and human rights abuse around the world. The Global Magnitsky Human Rights Accountability Act, which was enacted in 2017, allows for the imposition of sanctions on individuals and entities responsible for such abuses.

Designated Individuals:

  • Ovcharov
  • Nikolov
  • Genov
  • Nikolay Simeonov Malinov
  • Vladislav Ivanov Goranov

Designated Entities:

  • Russophiles National Movement
  • Various Bulgarian companies involved in the gambling industry