Did the Bulgarian authorities allow an illegal town to rise near Varna?

A vast resort complex the size of a small town has been built illegally near the Bulgarian Black Sea city of Varna, local authorities said after a joint operation with national police. Varna mayor Blagomir Kotsev said around 10 hectares of land are being developed without the required permits, with 104 large buildings either already completed or currently under construction.

The investor behind the project is a Ukrainian national, while the site of the illegal settlement lies close to a protected natural park and near Golden Sands, one of Bulgaria’s largest seaside resorts.

In addition to residential buildings, infrastructure including sewage systems and electricity substations has already been constructed, although the mayor said no official permits had been issued for the works.

Construction of the resort complex began as early as 2023. Initial reports to the authorities concerned the logging of centuries-old trees, but national institutions allegedly ignored the warnings.

Varna police director Tsvetan Pirovski said Tuesday’s police operation was the first time authorities had encountered workers at the site. Twenty-nine labourers were detained, most of whom allegedly attempted to hide in the surrounding forest. All were foreign nationals from Ukraine and Moldova.

“It is difficult to believe that such activity could continue for years without involvement or support from fairly high levels. This is something that must be investigated,” mayor Kotsev said.

An investigation by EUalive found that the so-called “illegal town” near Varna expanded after authorities issued “tolerance certificates” for the buildings in 2023, when the municipality was controlled by the former ruling party GERB of Boyko Borissov.

EUalive obtained three documents apparently giving Ukrainian businessman Oleg Nevzorov carte blanche to begin construction in the Baba Alino area near Golden Sands.

The same businessman was declared persona non grata in Bulgaria last year by the State Agency for National Security (DANS), although the decision was reversed only days later, according to investigative outlet BIRD, a partner of EUalive.net.

“The tolerance certificates were issued during GERB’s administration by the district’s chief architect, which is shocking because even a simple on-site visit would have shown that these buildings were constructed recently,” Varna MP Stella Nikolova from the reformist coalition Democratic Bulgaria told EUalive.

There are currently two ongoing investigations by the Bulgarian prosecution service.

“Our operation confirmed that there are 104 buildings under construction or already completed within the complex, and not a single one has a construction permit issued by Varna municipality,” Kotsev said.

Among the structures are 24 two-storey houses, each with a built-up area of 280 square metres.

“There are also multi-storey residential apartment blocks under construction, as well as extensive landscaped internal spaces,” the mayor added.

Authorities have now blocked further construction activity at the site and launched legal procedures to officially classify the buildings as illegal structures, a process that could ultimately lead to their demolition.

Later, the management of the private investor, KUB Corporation, said it was “deeply outraged by the statements and misleading insinuations made by the local administration and the mayor of Varna” regarding the company’s investments and ownership in the Baba Alino area.

“We have serious objections to the strongly stated opinions and the complete discrepancy between the facts and the actual plans and projects implemented by the company in the Varna region so far,” the company said, adding that it would hold a press conference.

Caption: Varna mayor Blagomir Kotsev (left) inspects the construction site near Varna together with local police officers. Photo: Varna Municipality.