{"id":152488,"date":"2026-11-04T10:39:16","date_gmt":"2026-11-04T10:39:16","guid":{"rendered":"https:\/\/www.legal500.com\/guides\/?post_type=comparative_guide&#038;p=152488"},"modified":"2026-11-04T12:26:23","modified_gmt":"2026-11-04T12:26:23","slug":"bulgaria-international-arbitration","status":"publish","type":"comparative_guide","link":"https:\/\/www.legal500.com\/guides\/chapter\/bulgaria-international-arbitration\/","title":{"rendered":"Bulgaria: International Arbitration"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-152488","comparative_guide","type-comparative_guide","status-publish","hentry","guides-international-arbitration","jurisdictions-bulgaria"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">CMS<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/www.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2023\/09\/CMS-LOGO.png\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">CMS<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/www.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2023\/09\/CMS-LOGO.png\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of International Arbitration laws and regulations applicable in Bulgaria<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What legislation applies to arbitration in your country? Are there any mandatory laws?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The main statute is the Arbitration Act (originally enacted in 1988 as the Law on International Commercial Arbitration; renamed in 2025 from the International Commercial Arbitration Act), modelled on the 1985 UNCITRAL Model Law. The legal framework is supplemented by the specific rules in the Civil Procedure Code.<\/p>\n<p>Several provisions of the Act are mandatory. Certain categories of disputes, i.e., rights in rem and possession of immovable property, maintenance, employment, and consumer contracts, are excluded from arbitration altogether. The arbitration agreement must be in writing, and each party must be afforded equal opportunity to present its case. Following the 2025 reform, arbitrators must satisfy statutory qualification requirements, and awards rendered by unregistered institutions or arbitrators are null and void. The right to seek setting aside or nullity before the Supreme Court of Cassation cannot be waived in advance.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is your country a signatory to the New York Convention? Are there any reservations to the general obligations of the Convention?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, Bulgaria is a signatory to the New York Convention.<\/p>\n<p>Bulgaria has made a reciprocity reservation. In addition, with regard to awards made in the territory of non-contracting States, Bulgaria applies the Convention only to the extent to which those States grant reciprocal treatment.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What other arbitration-related treaties and conventions is your country a party to?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Bulgaria has also ratified the European Convention on International Commercial Arbitration and the Convention on the Settlement of Investment Disputes between States and Nationals of Other States.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the law governing international arbitration in your country based on the UNCITRAL Model Law? Are there significant differences between the two? Are there any impending plans to reform the arbitration laws in your country? Has your jurisdiction adopted, or is it considering adopting, the amendments of 6 July 2026 regarding electronic awards and communications?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The main statute regulating conduct of arbitration proceedings where the seat of the arbitral tribunal is in Bulgaria is the Arbitration Act. The Arbitration Act closely follows the provisions of the 1985 version of the UNCITRAL Model Law on International Commercial Arbitration.<\/p>\n<p>A major reform adopted in July 2025 (State Gazette 63\/2025) expanded the Act&#8217;s scope to cover both domestic and international arbitration under a unified regime. Its centrepiece is the mandatory Register of Arbitrations, an electronic registry maintained by the Bulgarian Ministry of Justice. All Bulgarian arbitral institutions must be registered, and all proceedings seated in Bulgaria, including those administered by foreign institutions or conducted ad hoc, must be entered in the Register. An award rendered by an unregistered institution or arbitrator is null and void.<\/p>\n<p>The 2025 amendments also tightened service rules for the request for arbitration, introduced a discretionary stay of enforcement without mandatory security deposit where compelling evidence of setting-aside grounds is presented, and expressly reinstated the public policy ground for setting aside awards, which had been controversially removed in 2017. The former requirement that parties seeking recognition of a foreign award submit notarially certified copies of the award and the arbitration agreement, together with apostilles, was repealed as inconsistent with the New York Convention, which requires only a duly authenticated original or certified copy of the award and the arbitration agreement.<\/p>\n<p>While the Bulgarian legislature has not formally enacted the specific UNCITRAL amendments of 6 July 2026 concerning electronic arbitral awards and communications, the 2025 domestic legislative reform already accomplished statutory recognition and procedural equivalence for digital arbitral acts and electronic proceedings.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What arbitral institutions (if any) exist in your country? When were their rules last amended? Are any amendments being considered?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Bulgarian arbitration market has traditionally been dominated by the Arbitration Court at the Bulgarian Chamber of Commerce and Industry (BCCI), which remains the most active and well-known institution in the country. Its Rules of Arbitration were last amended in 2025. The Arbitration Court at the Bulgarian Industrial Association (BIA) is another established institution, as is the International Arbitration Court at the Institute of Private International Law. More specialised bodies also exist, such as the Commodity Exchange Arbitration at the Sofia Commodity Exchange.<\/p>\n<p>The 2025 amendments to the Arbitration Act have introduced a new institutional reality. Under the new regime, all arbitral institutions seated in Bulgaria must register in the Register of Arbitrations maintained by the Ministry of Justice. Registration requires, among other things, adopted procedural rules, a published tariff of fees, a list of arbitrators meeting the statutory qualifications, maintained office premises, a registry and archive, and a website with an electronic case management system.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a specialist arbitration court in your country?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No. Bulgaria does not have a specialist arbitration court within the state judiciary.<\/p>\n<p>Judicial oversight of arbitration is allocated across the existing courts. The\u00a0Supreme Court of Cassation\u00a0has exclusive jurisdiction over applications to set aside arbitral awards and may suspend their enforcement pending the outcome.<\/p>\n<p>At the enforcement stage, jurisdiction depends on the type of award. For domestic awards, the application for a writ of execution is filed with the district court at the debtor&#8217;s permanent address or registered seat. The Sofia City Court has exclusive jurisdiction only over exequatur proceedings for foreign awards.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the validity requirements for an arbitration agreement under the laws of your country?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Arbitration Act defines the arbitration agreement as the parties&#8217; consent to submit to arbitration all or some disputes arising from a defined contractual or non-contractual relationship. It may take the form of a clause in a contract or a standalone agreement. Written form is required for validity and is satisfied by a signed instrument or an exchange of communications providing a written record.<\/p>\n<p>A tacit agreement is also recognised, as a respondent who gives express written consent, explicitly accepts jurisdiction at the first hearing, or participates without raising a jurisdictional objection is treated as having consented to arbitration. The 2025 reform, however, added a protective limitation, namely, that the tacit agreement rule does not apply to natural persons unless they act in a professional or commercial capacity (e.g. as a sole trader, company manager, or partner).<\/p>\n<p>The parties must have legal capacity, the dispute must be arbitrable, and the agreement must identify or make determinable the disputes covered.<\/p>\n<p>In Interpretive Decision No. 1\/2023 (21 February 2024), the Supreme Court of Cassation settled the long-contested question whether an agent holding a general authorisation to conclude a contract may thereby bind the principal to an arbitration clause contained in that contract. The court held that a general power of attorney is sufficient and no separate or express authorisation for the arbitration agreement is required. The ruling resolved years of contradictory case law, under which some panels had insisted on a specific power of attorney for the arbitration clause.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are arbitration clauses considered separable from the main contract?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The arbitration clause in a contract is severable from the rest of its provisions. The separability principle applies so that an arbitration clause may remain effective even where the underlying contract is found to be void, voidable, or terminated, provided the defect does not affect the clause itself.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do the courts of your country apply a validation principle under which an arbitration agreement should be considered valid and enforceable if it would be so considered under at least one of the national laws potentially applicable to it?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Arbitration Act does not expressly codify a validation principle under which an arbitration agreement is upheld if valid under any one of several potentially applicable laws. Art. 47(1)(2) of the Arbitration Act provides that an award may be set aside if the arbitration agreement &#8220;<em>has not been concluded or is invalid <strong>according to this law<\/strong> or according to another law chosen by the parties in international arbitration<\/em>&#8221;\u00a0 This formulation applies the parties&#8217; chosen law first and defaults to the <em>lex arbitri<\/em> (Bulgarian law) only where no choice has been made; it does not mandate an alternative-reference approach testing validity under multiple laws.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are asymmetric arbitration clauses \u2013 for instance, where one party has the right to choose between arbitration or litigation while the other party does not have this option \u2013 valid in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Bulgarian law does not contain an express statutory provision addressing asymmetric clauses.<\/p>\n<p>The Supreme Court of Cassation has considered the question on several occasions and has drawn the following distinction: a clause that gives one or both parties a choice among precisely identified fora (e.g. a named arbitral institution or a specific state court) is valid, even if the choice belongs to only one side. A clause fails only where the right of forum selection is so vague and open-ended that the other party cannot know in advance where it may be summoned &#8211; the Supreme Court of Cassation treats \u00a0such a clause as null and void.<\/p>\n<p>Bulgarian courts do not require both parties to have identical procedural options. The decisive criterion is whether every forum contemplated by the clause is ascertainable at the time the dispute arises.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">In what instances can third parties or non-signatories be bound by an arbitration agreement? Are there any recent court decisions on these issues?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Bulgarian law takes a consent-based approach to the reach of an arbitration agreement.<\/p>\n<p>Interpretive Decision No. 1\/2023 (21 February 2024) resolved the two most commonly contested pathways. On assignment, the Court held that the arbitration clause transfers automatically to the assignee as an accessory of the claim and no separate agreement to arbitrate is required. On agency, the Court confirmed that a general power of attorney to conclude a contract suffices to bind the principal to the arbitration clause it contains, without the need for separate express empowerment.<\/p>\n<p>Non-signatories may also be bound through universal succession (e.g., merger, inheritance).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any recent court decisions and\/or legislative reform in your country concerning the choice of law applicable to an arbitration agreement where no such law has been specified by the Parties?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under Bulgarian law, the approach in the absence of a party choice of law governing the arbitration agreement has always been to determine its validity by reference to the law of the seat of arbitration (<em>lex arbitri<\/em>). This principle has been embedded in the Arbitration Act since its adoption and remains unchanged.<\/p>\n<p>There has been no legislative reform or divergent judicial interpretation departing from this approach.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is the law applicable to the substance determined? Is there a specific set of choice of law rules in your country?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The primary rule is party autonomy. The arbitral tribunal decides the dispute in accordance with the law chosen by the parties. The choice may be express or clearly demonstrated by the terms of the contract and the circumstances of the case.<\/p>\n<p>In the absence of a choice of law by the parties, the tribunal applies the law determined by the conflict-of-laws rules it considers applicable. The specific set of choice of law rules in Bulgaria are governed by the Private International Law Code. As an EU Member State, Bulgaria is also bound by the Rome I Regulation (Regulation (EC) No 593\/2008) on the law applicable to contractual obligations and the Rome II Regulation (Regulation (EC) No 864\/2007) on non-contractual obligations, both of which apply as directly effective EU law.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">In your country, are there any particular requirements for and\/or restrictions in the appointment of arbitrators?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The parties are free to agree on the number of arbitrators; failing agreement, the default is a three-member tribunal. The parties may also agree on the appointment procedure. In the absence of such agreement, each party appoints one arbitrator and the two party-appointed arbitrators select the presiding arbitrator.<\/p>\n<p>The 2025 amendments introduced detailed statutory qualifications for arbitrators. Under the new regime, an arbitrator must be a legally capable adult who has not been convicted of an intentional crime of a general nature (regardless of rehabilitation), holds a higher education degree, has at least eight years of professional experience, has not been deprived of professional rights, is not subject to insolvency proceedings, and possesses high moral qualities and professionalism.<\/p>\n<p>The Act expressly permits non-Bulgarian citizens to serve as arbitrators where the institution&#8217;s rules allow, where the person is an arbitrator at a foreign institution, or in international ad hoc proceedings. A person not on the institution&#8217;s panel may also be appointed if the institution&#8217;s rules permit and the statutory qualifications are met.<\/p>\n<p>Importantly, the qualification requirements do not apply to arbitrators serving under a foreign-seated institution, even when the proceedings take place on Bulgarian territory.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can the local courts intervene in the selection of arbitrators? If so, how?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Local courts have no role in the appointment of arbitrators. Where a party fails to appoint an arbitrator within 30 days or where the two party-appointed arbitrators cannot agree on a presiding arbitrator, the appointment is made by the head of the arbitral institution, not by a court.<\/p>\n<p>In international ad hoc arbitration seated in Bulgaria, the default appointing authority is the Chairman of the Bulgarian Chamber of Commerce and Industry (BCCI).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can the appointment of an arbitrator be challenged? What are the grounds for such a challenge? What is the procedure for such a challenge?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The appointment of an arbitrator is not subject to appeal where the arbitrator is appointed by the statutory appointing authority; that decision is final. However, an arbitrator may be challenged by a request for recusal on statutory grounds.<\/p>\n<p>An arbitrator may be challenged only where: (i) there are circumstances giving rise to justified doubts as to impartiality or independence; or (ii) the arbitrator lacks the qualification agreed by the parties. A party may challenge an arbitrator whom it appointed, or in whose appointment it participated, only on grounds that became known to it after the appointment. The proposed or appointed arbitrator has a continuing duty to disclose all circumstances that may give rise to justified doubts as to impartiality or independence.<\/p>\n<p>The parties may agree on a challenge procedure but cannot exclude judicial review. In the absence of agreement, the challenge must be made in writing to the tribunal within 15 days from the date the party learned of the tribunal&#8217;s constitution or of the circumstances giving rise to the challenge. The tribunal decides the challenge unless the arbitrator voluntarily withdraws or the other party consents to removal. If the challenge is rejected, the challenging party may apply to the Sofia City Court within 7 days; the court&#8217;s decision is final.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Have there been any recent developments concerning the duty of independence and impartiality of the arbitrators, including the duty of disclosure?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Arbitration Act requires every proposed or sitting arbitrator to disclose all circumstances that may give rise to justified doubts as to their impartiality or independence, and this obligation is continuing throughout the proceedings. These rules have been part of the statute since its original enactment and were not amended by the 2025 reform.<\/p>\n<p>The 2025 amendments introduced new statutory qualifications for arbitrators, including a requirement for &#8220;high moral qualities and professionalism&#8221;, but did not modify the substantive standards governing independence, impartiality, or the scope of the duty of disclosure.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are arbitrators immune from liability?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Arbitration Act does not contain an express provision granting arbitrators immunity from civil liability. In practice, the contractual relationship between the arbitrator and the parties (or the institution) is governed by general principles of civil and contractual liability under the Obligations and Contracts Act, subject to any limitations provided in the applicable institutional rules.<\/p>\n<p>The 2025 reform added an administrative enforcement layer. The Minister of Justice supervises compliance with the Arbitration Act through the Inspectorate, which has permanent access to the electronic archives of all arbitral cases. Arbitrators who render awards on non-arbitrable disputes or without being registered in the Register face fines of up to BGN 10,000 (approx. EUR 5,100), while the host institution may be sanctioned up to BGN 50,000 (approx. EUR 26,000), with all penalties tripled for repeat offences. In cases of systematic serious violations, the Minister may order the deregistration of an institution altogether.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the principle of competence-competence recognized in your country?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. The principle is expressly codified in the Arbitration Act, which provides that the arbitral tribunal rules on its own jurisdiction, including where jurisdiction is contested on the basis of the non-existence or invalidity of the arbitration agreement.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the approach of local courts towards a party commencing litigation in apparent breach of an arbitration agreement?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under the Arbitration Act, where a party commences court proceedings in respect of a dispute covered by an arbitration agreement, the court must terminate the proceedings if the opposing party raises a timely objection, unless the court finds that the arbitration agreement is null and void. The objection must be raised no later than the statement of defence.<\/p>\n<p>Bulgarian courts consistently apply this rule and terminate proceedings upon a valid jurisdictional objection.\u00a0The state court retains competence to examine the existence and validity of the arbitration agreement, including by way of a separate declaratory action for nullity of the clause.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What happens when a respondent fails to participate in the arbitration? Can the local courts compel participation?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Bulgaria, non-participation does not stop the arbitration, provided the respondent has been duly notified. If the respondent fails to submit a statement of defence or fails to appear at a hearing without showing sufficient cause, the tribunal may continue the proceedings and render an award on the basis of the evidence before it; the default is not treated as an admission of the claimant&#8217;s allegations.<\/p>\n<p>The 2025 amendments introduced stricter service requirements to ensure that the respondent is properly notified: service of the statement of claim, the notice of the first hearing, and the award must be effected through a licensed postal or courier operator, a bailiff, or a notary for parties located in Bulgaria.<\/p>\n<p>If the respondent cannot be served and the proceedings are terminated on that ground, the claimant retains the right to bring the claim before a competent state court.<\/p>\n<p>Local courts cannot compel participation in the arbitration.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can third parties voluntarily join arbitration proceedings? If all parties agree to the intervention, is the tribunal bound by this agreement? If all parties do not agree to the intervention, can the tribunal allow for it?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Arbitration Act does not contain express provisions on third-party joinder or intervention in arbitral proceedings. The general principle that arbitration is founded on consent means that a third party cannot be joined without both the agreement of all existing parties and the third party&#8217;s own consent to submit to the tribunal&#8217;s jurisdiction.<\/p>\n<p>Where all parties, including the third party, agree to the intervention, the tribunal may allow it, but it is not strictly bound to do so, as the tribunal retains discretion to refuse joinder if it would disrupt the proceedings or prejudice the equality of the parties. In practice, institutional rules (such as those of the BCCI Arbitration Court) may provide further guidance on the conditions for joinder.<\/p>\n<p>Where not all parties consent, the tribunal cannot compel joinder.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What interim measures are available? Will local courts issue interim measures pending the constitution of the tribunal? Are anti-suit and\/or anti-arbitration injunctions available and enforceable in your country? What is the approach of local courts in your jurisdiction to anti-arbitration injunctions issued in breach of arbitration agreements?  Have there been any recent decisions on this point?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The arbitral tribunal may, at the request of a party, order interim measures of protection as it considers necessary in respect of the subject matter of the dispute, and may require a party to provide appropriate security in connection with such measures.<\/p>\n<p>The parties to an arbitration agreement may request interim measures from the state courts for the purpose of securing the claim or any evidence relevant to it. This is possible both prior to commencement of the arbitration proceedings and while they are still pending before the arbitral tribunal. The claim must be admissible and prima facie well-founded, there must be a need for the measure (i.e. without it the enforcement of a future award would be impossible or substantially hindered), and the measure must be adequate and proportionate to the claim.<\/p>\n<p>Available measures include attachment of assets, injunctions against disposal of property, and other measures the court deems appropriate.<\/p>\n<p>Bulgarian procedural law does not provide for anti-suit injunctions or anti-arbitration injunctions as a distinct remedy. As regards foreign anti-suit and anti-arbitration injunctions, Bulgarian courts do not recognise or enforce them. A foreign order purporting to restrain a party from litigating before Bulgarian courts or proceeding before a Bulgarian-seated tribunal would be refused recognition on public policy grounds under the Private International Law Code, as an interference with Bulgarian judicial sovereignty.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there particular rules governing evidentiary matters in arbitration? Will the local courts in your jurisdiction play any role in the obtaining of evidence? Can local courts compel witnesses to participate in arbitration proceedings?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Arbitration Act does not impose mandatory rules of evidence on arbitral proceedings. The tribunal enjoys broad procedural autonomy, as it may conduct the proceedings in the manner it considers appropriate, subject to any contrary agreement of the parties.<\/p>\n<p>The arbitral tribunal may request assistance from a state court in the collection of evidence relevant to the arbitration proceedings. This may also be requested by any of the parties upon prior approval by the arbitral tribunal.<\/p>\n<p>The arbitral tribunal itself has no power to compel witness attendance or to administer oaths, as it lacks the coercive authority of a state court. However, through the court-assistance mechanism, a Bulgarian court may exercise its powers under the CPC to compel witnesses to appear and testify. Outside this mechanism, witness participation in arbitration proceedings is voluntary.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What ethical codes and other professional standards, if any, apply to counsel and arbitrators conducting proceedings in your country? Do these codes and professional standards apply only to counsel and arbitrators having the nationality of your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Counsel who are members of the Bulgarian bar are bound by the Attorney Act and the Ethical Code of the Attorney. EU lawyers may practise under their home title after registration; non-EU foreign lawyers may appear before state courts only alongside a Bulgarian attorney and with prior authorisation, but in arbitration parties are free to choose any representative, including unregistered foreign counsel.<\/p>\n<p>For arbitrators, there is no separate ethical code in statute. The Arbitration Act imposes a continuing duty to disclose circumstances that may raise doubts as to impartiality or independence. The 2025 reform introduced detailed statutory qualifications: higher education, at least eight years of professional experience, no criminal record for intentional offences, no deprivation of professional rights, no pending insolvency, and &#8220;high moral qualities and professionalism&#8221;. These requirements apply to arbitrators at Bulgarian-seated institutions but not to those serving under foreign-seated institutions, even when the proceedings take place in Bulgaria. Individual institutions may impose additional ethical standards, such as the Code of Ethics of the Arbitration Court at the BCCI.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">In your country, are there any rules with respect to the confidentiality of arbitration proceedings?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Arbitration Act does not impose a statutory duty of confidentiality on arbitral proceedings. In practice, however, Bulgarian arbitral institutions routinely incorporate confidentiality obligations in their rules of procedure.<\/p>\n<p>The 2025 amendments introduced the Arbitration Registry, maintained by the Ministry of Justice. The Registry is public only in the part containing data on arbitral institutions and the names and professions of their listed arbitrators. All other data, including party names and addresses, the request for arbitration, and the arbitral award, are accessible only to the Minister of Justice, the persons entrusted with maintaining the Registry, the Inspectorate under the Minister of Justice, and the courts.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are the IBA guidelines on conflicts of interest and other similar soft law sources viewed by courts and tribunals in your jurisdiction? Are they frequently applied? Have any developments under the 2024 IBA Guidelines, including the expanded Orange List, the treatment of social media conduct, or due diligence obligations on parties, and the UNCITRAL Code of Conduct for Arbitrators been addressed by courts and tribunals in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The IBA guidelines on conflicts of interest and similar soft law instruments are not widely used in Bulgaria. Neither the Arbitration Act nor Bulgarian arbitral institutions formally incorporate them, and the Supreme Court of Cassation relies on domestic statutory standards when assessing arbitrator impartiality and independence.<\/p>\n<p>The developments under the 2024 IBA Guidelines and the UNCITRAL Code of Conduct for Arbitrators have not been addressed by Bulgarian courts or tribunals.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are the costs of arbitration proceedings estimated and allocated? Can pre- and post-award interest be included in the principal claim and costs incurred?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Arbitration Act does not prescribe a fixed method for estimating costs. Institutional arbitration bodies set their own tariffs of fees and expenses. In ad hoc arbitration, the tribunal determines costs in the award.<\/p>\n<p>The tribunal has discretion for costs allocation and the general approach follows the &#8220;loser pays&#8221; principle unless the parties have agreed otherwise. Parties can recover arbitration fees, attorneys&#8217; fees, and evidence-related expenses.<\/p>\n<p>Interest can be included on principal claim, but not on costs.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are applications for security for costs viewed in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Security for costs is not admissible under Bulgarian law.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What legal requirements are there in your country for the recognition and enforcement of an award? Is there a requirement that the award be reasoned, i.e. substantiated and motivated?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Arbitration Act sets out several formal prerequisites for a valid award. It must contain reasons supporting the tribunal&#8217;s conclusions, except where the parties have dispensed with that requirement by agreement or where the award records a settlement reached on agreed terms. The award must also state the date and place of arbitration and bear the signature of the arbitrator or arbitrators.<\/p>\n<p>Publication occurs through the electronic case management system of the relevant institution; awards rendered by ad hoc tribunals or by institutions seated abroad are instead recorded in the Arbitration Registry. Under the 2025 reform, an award is treated as null and void where it originates from an arbitration body or arbitrator not entered in the Registry (to the extent registration is mandatory) or where the underlying dispute falls outside the scope of arbitrable matters.<\/p>\n<p>As regards enforcement, Bulgaria has been a contracting state to the 1958 New York Convention since 1961. Awards with a Bulgarian seat carry res judicata effect and may be enforced directly: the successful party applies for a writ of execution from the competent district court and the court issues it without examining the merits.<\/p>\n<p>Where the seat lies outside Bulgaria, the award-creditor must bring exequatur proceedings before the Sofia City Court. The court&#8217;s scrutiny is limited to the Convention&#8217;s article V refusal grounds, i.e., absence of a valid arbitration agreement, denial of due process, decisions beyond the scope of the submission, procedural departures from the parties&#8217; agreement, and incompatibility with Bulgarian public policy. Whether an award qualifies as domestic or foreign turns exclusively on the seat of arbitration, irrespective of the parties&#8217; nationalities or the substantive law applied.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the estimated timeframe for the recognition and enforcement of an award (domestic and international)? Can a party bring a motion for the recognition and enforcement of an award on an ex parte basis? Would the standard of review be different for domestic and international awards?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, the distinction is seat-based.<\/p>\n<p>Domestic awards are enforced on an ex parte basis: the creditor applies for a writ of execution from the district court, which examines the application in closed session within 7 days, checking only formal regularity and nullity grounds. A writ is typically obtained within a few weeks.<\/p>\n<p>For foreign awards, exequatur proceedings are brought before the Sofia City Court under the New York Convention. The procedure is inter partes: the debtor may file an answer and raise Art. V objections. The court examines the Convention grounds but does not review the merits. The writ of execution is not handed to the creditor until the decision admitting enforcement has entered into force. Recognition typically takes several months at first instance, and longer if the decision is appealed.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can arbitration awards be appealed or challenged in local courts? What are the grounds and procedure in this regard? Is it possible for parties to waive any rights of appeal or challenge to an award by agreement?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No merits appeal is available. An award may be challenged before the Supreme Court of Cassation on two distinct tracks.<\/p>\n<p>The first is an action for setting aside, which must be filed within three months of receipt of the award. The grounds include: incapacity of a party, non-existence or invalidity of the arbitration agreement, contrariety with Bulgarian public policy (restored by the 2025 reform), lack of due notice or inability to participate, award exceeding the scope of the arbitration agreement, and non-compliance with the agreed or statutory procedure. The 2025 amendments also added a ground based on judicially established falsity of evidence or criminal conduct. For this last ground, the three-month period runs not from receipt of the award but from the date the criminal conviction or the declaratory civil judgment becomes final. Depending on the ground, the Supreme Court of Cassation either remits the case to the tribunal or allows the party to bring the dispute before a state court.<\/p>\n<p>The second is a nullity action, which is not subject to any time limit. An award is null if rendered by an unregistered institution or arbitrator, or over a non-arbitrable dispute.<\/p>\n<p>The parties cannot waive either right of challenge in advance.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">In what instances can third parties or non-signatories be bound by an award? To what extent might a third party challenge the recognition of an award?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Arbitral awards bind only the parties and their successors. A third party may be bound in limited circumstances: through universal succession (e.g., merger, inheritance), through written consent to joinder or intervention in the arbitral proceedings, or, at the enforcement stage, where a third person has pledged or mortgaged its property to secure the debtor&#8217;s obligation, in which case the enforcement writ extends to that specific asset.<\/p>\n<p>A third party cannot directly challenge the recognition of an award unless it is the person against whom recognition or enforcement is sought. Where enforcement is directed against property that a third party claims as its own, the proper remedy is not an attack on recognition but a third-party ownership claim against both creditor and debtor under the Civil Procedure Code.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any rules \/ court decisions that regulate or prohibit third party funding of arbitration proceedings \u2013 for instance, where funding by an entity not involved in the dispute in return for a share of the eventual award may be barred \u2013 in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Bulgarian law neither regulates nor prohibits third-party funding of arbitration proceedings. In the absence of a prohibition, such arrangements are in principle permissible under the general freedom of contract, but they operate in a legal vacuum with no specific safeguards or transparency requirements.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is emergency arbitrator relief available and recognized in your country? Are decisions made by emergency arbitrators readily enforceable?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There is no legal framework for emergency arbitrator relief in Bulgaria. The Arbitration Act does not recognise the concept and decisions of emergency arbitrators appointed under foreign institutional rules have no statutory basis for enforcement by Bulgarian courts. A party requiring urgent pre-arbitration relief must apply to the competent state court for interim measures under the Civil Procedure Code.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there arbitral laws or arbitration institutional rules in your country providing simplified or expedited procedures for claims under a certain value? Are they often used?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Arbitration Act does not contain a statutory expedited or simplified procedure. Whether an expedited procedure is available depends on the rules of the particular arbitral institution administering the case. Some Bulgarian arbitral institutions have adopted their own rules for expedited proceedings, which apply where the parties have so agreed in their arbitration clause or subsequent agreement.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Have there been any recent court decisions in your country considering the setting aside of an award that has been enforced in another jurisdiction or vice versa?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No recent case law has been identified in this regard.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Have there been any recent court decisions in your country considering the issue of corruption? What standard do local courts apply for proving corruption? Which party bears the burden of proving corruption?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There is no reported Bulgarian court practice addressing corruption in the context of arbitration. Under Bulgarian law, corruption is a criminal offence investigated and prosecuted by the prosecution authorities in criminal proceedings.<\/p>\n<p>Under the 2025 reform, criminal conduct by an arbitrator, a party, or a representative now constitutes a standalone ground for setting aside an award before the Supreme Court of Cassation. The standard of proof is high, as the criminal conduct must be established either by a final criminal conviction or by a declaratory civil judgment.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Has your country withdrawn from, or announced its intention to withdraw from, the Energy Charter Treaty?  What is the status of the sunset clause in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. The 52nd National Assembly adopted the Law on Denunciation of the ECT and the Protocol on Energy Efficiency on 15 July 2026. The withdrawal forms part of the coordinated EU process under Council Decisions (EU) 2024\/1638 and (EU) 2024\/1677 of 30 May 2024; the stated rationale was the ECT&#8217;s incompatibility with EU energy and climate policies and modern investment-protection standards.<\/p>\n<p>On 16 July 2026 the National Assembly also ratified the Agreement on the Interpretation and Application of the ECT, signed in Brussels on 18 February 2026 by the EU and 26 Member States including Bulgaria. Following the CJEU rulings in Achmea (C-284\/16) and Komstroy (C-741\/19), the Agreement confirms that the ECT Article 26 arbitration clause cannot serve as a basis for intra-EU investor-State arbitration, and that Article 47(3) ECT, i.e. the sunset clause, does not extend, and never could have extended, its effect to investments already made within the EU. The sunset clause therefore has no operative effect in the intra-EU context. For extra-EU investments, the standard 20-year sunset period under Article 47(3) would in principle still apply.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Have there been any recent court decisions or legislative developments in your country with respect to intra-European investor-State arbitration, the Energy Charter Treaty, or the enforcement of intra-EU? Are there any pending decisions?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The most notable is the ACF Renewable Energy Limited v. Bulgaria ECT arbitration. An arbitral award of 5 January 2024 found Bulgaria in breach of the ECT for modifications to its renewable electricity support scheme and ordered Bulgaria to pay approximately \u20ac61.04 million plus interest.<\/p>\n<p>Bulgaria notified the award to the European Commission under State aid rules and has not paid. The Commission opened an in-depth investigation (Case SA.114457) to assess whether the award constitutes incompatible State aid under Article 107(1) TFEU. The case is still pending.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Have arbitral institutions in your country implemented reforms towards greater use of technology and a more cost-effective conduct of arbitrations? Have there been any recent developments regarding virtual hearings?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The most significant development is the 2025 reform of the Arbitration Act, which introduced several technology-oriented measures at statutory level. Arbitral institutions seated in Bulgaria are now required to maintain an electronic case management system linked to their website, and all arbitral awards are formally announced through the electronic case file. The Act also established the centralized Arbitration Registry, maintained electronically by the Ministry of Justice, which records institutional data, arbitrator information, and for ad hoc and foreign-institution proceedings &#8211; case-level details. Procedural acts and statements must be recorded in a manner that allows electronic storage and reproduction.<\/p>\n<p>On virtual hearings, the 2025 amendments expressly permit arbitral hearings to be conducted by videoconference, unless the parties have agreed otherwise. This statutory endorsement of remote hearings reflects a shift from a position where videoconference hearings depended entirely on institutional rules or party agreement to one where they are available by default under the law itself.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Have there been any recent judicial and\/or legislative developments in your jurisdiction with regard to disputes involving ESG issues such as climate change, sustainability, social responsibility and\/or human rights?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Bulgaria does not have standalone ESG legislation directly affecting arbitration.<\/p>\n<p>Recent ESG-related legislative developments include amendments to the Climate Change Mitigation Act, which introduced a long-term national target of climate neutrality and net-zero greenhouse gas emissions by 2050, and amendments to the Accountancy Act introducing sustainability reporting obligations for large undertakings and certain public-interest SMEs.<\/p>\n<p>There are no reported Bulgarian court decisions addressing the impact of ESG considerations on arbitration proceedings.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Have any international economic sanctions regimes been implemented (either independently, or based on EU law) in your jurisdiction recently? Have there been any recent decisions in your country considering the impact of sanctions on international arbitration proceedings?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As an EU Member State, Bulgaria applies all EU restrictive measures directly, including the successive packages of sanctions adopted against Russia and measures targeting Belarus, Iran, and other regimes. Bulgaria does not maintain an independent national sanctions regime.<\/p>\n<p>There are no reported Bulgarian court decisions specifically addressing the impact of sanctions on international arbitration proceedings.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Has your country enacted any regulation and\/or implemented any rules, guidlines or regulations regarding the use of artificial intelligence (AI), generative AI or large language models in the context of dispute resolution?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>At the professional self-regulation level, the Supreme Bar Council has prepared draft amendments to the Ethical Code of the Attorney addressing the use of AI in legal practice, including dispute resolution. The draft has undergone public consultation, and the Supreme Bar Council is currently deliberating whether the proposed rules should take the form of binding amendments to the Ethical Code or soft law guidelines. This process is expected to conclude by the end of 2026.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any specific legal, institutional, or procedural frameworks in your jurisdiction governing the arbitration of digital asset or blockchain-related disputes?  Have there been any court decisions in your jurisdiction concerning the validity or enforceability of arbitration agreements incorporated into smart contracts or digital asset terms?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Bulgaria has no specific legal, institutional, or procedural framework governing the arbitration of digital asset or blockchain-related disputes. The Arbitration Act applies to such disputes on the same terms as any other commercial dispute, without special rules for smart contracts or digital assets.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">6528<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/www.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/152488","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/www.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/www.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=152488"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}