US hedge fund eyes TurkStream stakes tied to Russian energy

US-based Elliott Investment Management is in early-stage talks to acquire a stake in a package of European infrastructure assets, including a pipeline that carries Russian natural gas to the continent, in a move that could signal a shift in Western engagement with Moscow’s energy sector.

According to people familiar with the matter, the hedge fund—led by billionaire Paul Singer—has signed a nondisclosure agreement with Bulgartransgaz, Bulgaria’s state-owned gas transmission operator, as part of its due diligence process, Caliber.Az reports via The Wall Street Journal. 

The proposed deal includes a potential investment in the Bulgarian extension of the TurkStream pipeline, as well as a network of data centres, fibre-optic cables, and other infrastructure assets.

Elliott representatives reportedly met with senior Bulgarian government officials in Sofia in April to discuss the potential transaction. In addition to a stake in the infrastructure, Elliott is also considering refinancing Bulgartransgaz’s existing debt.

The talks remain at an early stage and there is no certainty that a deal will be reached. The potential size of the investment has not been disclosed.

TurkStream is currently the only major Russian pipeline still delivering gas to Europe following the sharp reduction in energy ties after Russia’s invasion of Ukraine in 2022. The pipeline crosses the Black Sea to Türkiye before supplying countries including Hungary and Slovakia. While Russia once accounted for roughly 45 per cent of Europe’s gas imports, that figure has fallen to around 19 per cent, now primarily via TurkStream and liquefied natural gas shipments.

The prospective deal comes amid a broader recalibration of US policy toward Russia. The Trump administration has recently emphasised economic diplomacy in its messaging on Ukraine, raising the possibility that American capital could play a role in restoring select parts of Moscow’s energy export routes—albeit indirectly through third countries like Bulgaria.

Elliott, which manages over $70 billion in assets, has a track record of high-profile investments and activist campaigns involving global companies such as SoftBank, Honeywell, and Starbucks. It also gained notoriety for its prolonged legal battle with Argentina over defaulted sovereign debt, which ultimately yielded substantial returns.

By Sabina Mammadli