Basically, this is what happened:
In 1994, the Bulgarian government refused to re-register the Christian Association of Jehovah's Witnesses under a new Bulgarian law requiring religious organizations to register with the government. This in effect, revoked the legal standing of Jehovah's Witnesses in Bulgaria.
There were several issues at stake. The two main ones were refusal of Witnesses to serve compulsory military duty and the policy of enforced refusal of blood.
In 1995, this was appealed before the Bulgarian Supreme Court and the Witnesses' case was dismissed.
Through their lawyers, the JW leadership next complained to the usual entities: Their friend and ally, the United Nations, the European Court of Human Rights, etc.
Both parties eventually agreed to a mediated settlement before the European Court of Human Rights. In reaching this settlement, both parties agreed to make certain concessions.
The Bulgarian government agreed to modify its laws to allow for alternative service for conscientious objectors.
Jehovah's Witnesses agreed to: "...draft a statement for inclusion it its statute providing that member's should have free choice in the matter for themselves and their children without any control or sanction on the part of the association."
The Witness leadership's idea of honoring this agreement was of course, to make a minor procedural change that for all intents and purposes left the sanctions for noncompliance in place.
Was the Bulgarian government fooled? I doubt it. Even if they were, there were plenty of xJW's at the time willing to write letters explaining what had happened. Ditto for the ECHR.
The Witnesses may have won a liar's victory in Bulgaria, but I think ultimately it has hurt them. Ten years later, things are worse for them in Eastern Europe.