U.S. sanctions five current and former Bulgarian officials for corruption

Feb. 10 (UPI) -- Five former and current Bulgarian government officials were sanctioned Friday by the U.S. Treasury Department for alleged "extensive involvement in corruption."

The department announced sanctions against Rumen Stoyanov Ovcharov, Aleksandar Hristov Nikolov, Ivan Kirov Genov, Nikolay Simeonov Malinov and Vladislav Ivanov Goranov as well as four entities owned or controlled by Malinov and one controlled by Goranov.

"The United States supports our NATO ally Bulgaria in its fight against both entrenched corruption and Russian influence, which undermine democratic institutions," said the Treasury Department's Brian E. Nelson in a statement. "The behavior exposed today spans political parties and administrations, highlighting the urgent need to dismantle the networks that have for years perpetuated illicit activities, especially in the energy sector. Corruption robs the Bulgarian people of hundreds of millions of dollars and hinders investment and economic growth in the country."

According to the Treasury Department, Bulgaria suffers from entrenched corruption that includes energy sector corruption, judicial bribery and legislative manipulation.

Goranov was Minister of Finance and Bulgarian member of Parliament. Treasury alleges that he participated in a "corruption scheme that resulted in tens of millions of euros paid to Bulgarian officials in exchange for favorable legislation for interested parties involved in the gambling industry."

The department said those actions led to a loss of roughly $300 million from tax authorities over a five-year period that benefitted Bulgarian oligarch interests.

Ovcharov served as a Bulgarian member of parliament and is now a member of the Bulgarian Socialist Party National Council. Ovcharov was also the minister responsible for energy in the late 1990s and again in the mid-2000s, according to Treasury.

The Treasury Department said Ovcharov got more than $5.3 million in offshore bank accounts since serving as Minister of Energy.

Nikolov is a former CEO of the nuclear power plant KNPP. The Treasury Department alleges that Ovcharov "repeatedly engaged in corrupt energy contracts with Russian energy companies, receiving bribes and other kickbacks in exchange for fixed-price contracts for Russian gas and nuclear fuel and support contracts at KNPP."

Genov is also a former CEO of KNPP and was in the Bulgarian parliament from 2017-2019.

The Treasury Department sanctions allege that Ovcharov, Nikolov, and Genov "coordinated personal commissions by corruptly diverting service contracts for KNPP to their own business interests."

Malinov leads the pro-Russian group Russophiles National Movement and is a former Bulgarian member of Parliament.

He allegedly bribed a judge to allow him to travel to Russia to get a $33,000 award and the Friendship Medal from Vladimir Putin.