Trade and economic relations between Russia and Bulgaria have developed within the context of Russia's relationship with the European Union, Bulgaria being an EU member since January 1, 2007.
As one of Bulgaria's major economic partners, Russia ranks first in terms of Bulgaria's exports and 3rd in terms of its trade turnover with other countries, behind only Germany and Greece. According to reports from Russia's Federal Customs Service, during the global economic downturn in 2009, the two countries' trade dropped by 52.8% from 2008 and totaled some $2.6 billion, with Russia's exports to Bulgaria plummeting by 55.3% and accounting for $2.2 billion, while the country's imports decreased by 33.8% and stood at $423 million. Russia's balance of foreign trade remained positive and accounted for $1.7 billion.
In 2009, Russia's share in Bulgaria's trade turnover totaled 8.8%, with its imports reaching 13% and exports accounting for 2%. Bulgaria's exports to Russia mainly included machinery, equipment and heavy vehicles (35.6%), chemical products (34.6%), and food and agricultural raw materials (17.3%). In the first six months of 2010, Russia became the largest importer of Bulgarian wine, purchasing 12 million litres, or 60% of Bulgaria's wine exports. Russia's exports to Bulgaria mostly included fuel and raw materials (87%), while machinery and equipment totaled 9%. Russia's exports to Bulgaria mostly consisted of fuel and raw materials (87%), while machinery and equipment totaled 9%.
In 1992, the two countries set up the Russian-Bulgarian Intergovernmental Commission for Economic, Scientific and Technological Partnership. The commission has held 13 sessions, with the latest held on December 10 and 11, 2009. The commission's co-chairmen are Russian Minister of Energy Sergei Shmatko and Bulgarian Minister of Economy, Energy and Tourism Traicho Traikov.
Russia and Bulgaria adjusted their trade and economic legal relations after Bulgaria joined the European Union.
The two countries' partnership in the energy sector is of particular importance. This cooperation includes the construction of the Burgas–Alexandroupoli oil pipeline, which entered a practical stage after a September 4, 2006 decision, at a trilateral summit held by Russia, Bulgaria and Greece in Athens. Other projects include the construction of the Belene Nuclear Power Plant, with an agreement signed between Russia's Atomstroiexport and Bulgaria's National Electric Company on November 29, 2006 in Sofia, and the construction of the South Stream gas pipeline, with an agreement on Bulgaria's section of the route of gas supplies to Europe signed by Russian Prime Minister Vladimir Putin and Bulgarian President Georgi Parvanov at their meeting at the Balkan Energy Summit in Zagreb on June 24, 2007. A number of other agreements on joint projects in the energy industry were signed during Mr Putin's visit to Bulgaria on January 17 and 18, 2008.
An important step to combat a recession in trade relations between Russia and Bulgaria was taken in 2009, when a regular ferry route served by the Russian ferry Avangard was launched to link the Bulgarian city of Varna and Russia's Port Kavkaz. In 2009, the ferry made a total of 36 trips. Setting up a checkpoint and a temporary storage warehouse for excisable goods in Port Kavkaz in December 2009 also promoted Bulgaria's exports to Russia.
The two countries have maintained a stable investment partnership, an example being the launch of new oil processing facilities at the LUKOIL Neftochim Burgas oil refinery owned by Russia's oil giant LUKoil. As of today, a total of $1 billion have been invested in the plant, this figure includes its purchase, reconstruction and modernization from 1999 through 2009).
The use of spare reserves in the interregional partnership plays an important role in improving the two countries' trade structure. An impetus was given to the cooperation through the events of the Year of Bulgaria in Russia in 2009, with the Bulgaria Today exhibition of April 2009 and two Russian-Bulgarian business forums held in February and April 2009, as well as visits of Bulgarian delegations to Russia's regions, particularly the visits to Yekaterinburg and Tyumen in May, to Krasnodar and Samara in June, and to Irkutsk in November. On April 7 through 9, 2009, Sofia Mayor Boyko Borisov visited Moscow. On September 9, 2010, Moscow Mayor Yury Luzhkov attended the opening ceremony of the children's recreation camp Raduga (Rainbow) at the Kamchia health and recreational centre. The ceremony was also attended by Bulgarian Prime Minister Boyko Borisov.