Bulgaria's information and communication technology (ICT) sector generated an annual turnover of over BGN 5.5 billion in 2018, an annual survey by local publisher Computerworld Bulgaria showed. In 2018 the revenues generated by Bulgarian companies developing software and applications for foreign and local clients jumped by 64% to BGN 716 million, the ICT TOP 100 survey published last week showed. Bulgaria's software sector exceeded BGN 950 million in 2018, as revenues from IT services alone generated over BGN 3 billion, up by 45% from 2017.

In the first quarter of 2019 the production of mineral fuels for internal combustion in Bulgaria increased strongly by 49.4% on an annual basis, shows the industry report of SFB Capital Market JSC on the development of the sector. Foreign trade in mineral fuels in value terms is recovering with an annual increase of 96.3%. Imported quantities declined by 5.7% in the first quarter of 2019, while export increased significantly - 3.6 times year-on-year. The export orientation of the domestic production is very clear. The large increase in production has led to a large increase in exports, while the imported quantities decreased, as well as the quantities of fuels supplied on the domestic market. Estimates for the first quarter of 2019 show a year-on-year decline of 18% of the fuels provided for the domestic market. For more information and orders: http://sfb.bia-bg.com

The government is proposing to the parliament to ratify the agreement between the country's energy regulator and the European Bank for Reconstruction and Development concerning support in the development of Bulgaria's regulatory framework in the energy field. The agreement envisages support from the EBRD in drafting legislation on the monitoring of the country's energy market, as well as developing internal rules for the investigative expert at the energy regulator. The contract between the Energy and Water Regulatory Commission and the EBRD was signed earlier this year. The BGN 1.3 million project will benefit from EU funding under Operational Programme Good Governance.

The government approved an increase of BGN 340,000 in the capital of the Fund Manager of Financial Instruments in Bulgaria EAD. The funds which the Fund's Coordination Unit will receive are planned in accordance with the State Budget of the Republic of Bulgaria Act for 2019 and will be provided through changes in the budget of the Ministry of Finance. The increase of the capital will be done by issuing new registered shares with nominal value of BGN 1 each. The Coordination Unit of the Fund Manager of Financial Instruments in Bulgaria EAD was created in accordance with the Memorandum of Understanding signed between the European Investment Bank and the Republic of Bulgaria in December 2016. It has been successfully functioning as a single point for Coordination and Information Coordination Activities of the interested parties for the faster and more successful implementation of investment projects in Bulgaria, including the possibilities of combining the financing from the European structural and investment Funds 2014-2020, and the European fund for strategic investments.

The practice in this government that someone wants to leave office, but is not permitted to, continues. Such is the situation with the CEO of NEK Petar Iliev, who resigned on June 19th. However, the Board of Directors of Bulgarian Energy Holding JSC did not accept this resignation and Iliev will have to continue to manage the public provider despite his reluctance. The resignation came after business organizations once again reported on put-up auctions for electricity on the free market, organized by NEK. Employers complained that they were becoming NEK's "shepherds" and poor management of the system led to a rise in the cost of electricity for business. In four of its official positions this year, the four nationally-represented employers' organizations - CEIBG, AICB, BIA and BCCI - accused NEK and even demanded the resignation of Petar Iliev because they believe that there are auctions for specific buyers citing the name of businessman Hristo Kovachki. Before Petar Iliev, the Minister of Energy Temenuzhka Petkova and Social Minister Biser Petkov could not leave their offices, and GERB deputy Delyan Dobrev managed to leave the parliament at second attempt.

Bulgarian insurance company Armeec intends to discontinue its operations in 18 European countries, according to a statement by the Financial Supervision Commission (FSC). Armeec is planning to stop offering its services in Belgium, France, Germany, Italy, the Netherlands, Denmark, Great Britain, Greece, Portugal, Spain, Austria, Finland, Sweden, Cyprus, Poland, Hungary, the Czech Republic, and Romania, Bulgaria's financial regulator said on Tuesday. The FSC has informed its peers in those countries of Armeec's decision. Armeec is part of diversified group Chimimport.

Bulgaria is the leader in the list of favorites for the new plant of the German car concert Volkswagen, says the specialized German edition Automobilwoche. Depending on which concern it gives preference to Sofia's production base in front of that in Izmir. A preliminary decision to build the plant will be taken by early July, says Automobilwoche. The information is different from that of the German Handelsblatt. According to Automobilwoche, there are now inter-company talks about the sale of production property near Sofia. There are many Austrian banks and investors involved in the talks with Sofia, the newspaper said. It is certain that the decision will be taken by the headquarters of the Wolfsburg concert, not the Škoda division. Personally engaged and leading the process of choosing is the Production Manager and Member of the Board of Directors Oliver Blume. So far, Skoda boss Bernhard Meyer was in charge of the operation. The plant is expected to open between 4000 and 5000 jobs and the investment of EUR 1.3 billion makes it the largest Volkswagen project in recent years.

Kaufland Bulgaria & Co, part of German retail chain Kaufland, said that its consolidated net profit fell to BGN 72.6 million in 2018 from BGN 77.2 million in 2017. Kaufland Bulgaria & Co booked sales revenue of BGN 1.55 billion last year, up from BGN 1.47 billion in 2017. Cost of goods sold rose to BGN 1.17 billion in 2018 from BGN 1.11 billion the year before. Personnel costs increased to BGN 120.6 million in 2018 from BGN 108.7 million in 2017, while expenses for hired services grew to BGN 114.3 million from BGN 105.7 million. The company's assets rose to BGN 1.41 billion at the end of 2018 from BGN 1.29 billion a year earlier, due to an increase in current assets. Kaufland entered the Bulgarian market in 2006 and currently operates 59 stores across the country.

Bank of England Governor Mark Carney spelled out his criticism of a central pillar of Tory leadership front-runner Boris Johnson’s Brexit strategy. Johnson has argued that the U.K. should try to strike an agreement with the European Union to continue tariff-free trade in the case of a no-deal Brexit. It’s a strategy that would rely on article 24 of the General Agreement on Tariffs and Trade, which allows two countries working toward a free-trade deal to maintain existing arrangements as they do so. Carney said that such an arrangement wouldn’t be a no-deal Brexit, because it would require the consent of both sides. The EU has repeatedly ruled out making any such mini-deals in the place of a comprehensive Withdrawal Agreement. The use of the arcane regulation has become a point of contention between Carney and Johnson since the former criticized it in a radio interview last week. Johnson pushed back on Tuesday, saying the measure still offered a “hopeful prospect” and was “the way forward,” prompting a question on the topic during Carney’s appearance before Parliament’s Treasury Committee.

American technology companies have resumed selling certain products to Huawei Technologies Co. after concluding there are legal ways to work with the Chinese telecom giant in spite of its inclusion on a Trump Administration blacklist. Micron Technology Inc., the largest U.S. maker of computer memory chips, said on Tuesday that it had started shipping some components to Huawei after its lawyers studied export restrictions. Intel Corp., the largest microprocessor maker, has also begun selling to Huawei again, according to a person familiar with the matter. It’s not clear how many other suppliers have reached the same conclusion. The U.S. Commerce Department added Huawei last month to what’s known as an entity list, a move designed to bar the Chinese company from buying American components and software. The Trump Administration said Huawei helps Beijing in espionage and represents a security threat -- charges the company denies. Officials at Commerce and the White House are frustrated that companies have resumed Huawei shipments, according to another person familiar with the matter. The White House didn’t immediately respond to a request for comment.

"As of July 7, Iran will forcefully take the second step of reducing its commitments" to the nuclear deal, Rear Admiral Ali Shamkhani, secretary of Iran's Supreme National Security Council, said. Iran will further free itself from the 2015 nuclear deal in defiance of new American sanctions as US President Donald Trump warned the Islamic republic of "overwhelming" retaliation for any attacks, AFP reports. Tensions between Iran and the US have spiralled since last year when Trump withdrew the United States from the deal under which Tehran was to curb its nuclear programme in exchange for relief from economic sanctions. The two arch-rivals have been locked in an escalating war of words since Iran shot down a US surveillance drone in what it said was its own airspace, a claim the US vehemently denies. On Monday, Washington stepped up pressure by blacklisting Iran's supreme leader Ayatollah Ali Khamenei and top military chiefs, saying it would also sanction Foreign Minister Mohammad Javad Zarif later in the week.