Bulgaria is preparing a law that would allow it to confiscate the “Lukoil Neftekhim Burgas” oil refinery and then sell it to a new owner.
This is reported by Reuters and the Bulgarian media Novini.
The Burgas Refinery is the largest oil refinery in the Balkans, supplying about 80% of Bulgariaʼs fuel. The country fears that new US sanctions will lead to a fuel shortage. Politico, citing sources, reported on November 1 that Bulgaria is on the brink of a fuel and political crisis due to the new sanctions.
The government wanted to file an appeal to exempt the country from new US sanctions. However, after a meeting in parliament, the opinion was expressed that the only way out of the situation was for the state to purchase this refinery.
The new bill would allow the sale of the plant only with the consent of the Council of Ministers and after approval by the State Agency for National Security (DANS).
Bulgarian President Rumen Radev vetoed the bill, but parliament overrode it. Radev explained that the document makes the Council of Ministers dependent on the opinion of DANS, which is constitutionally unacceptable.
At the same time, “Lukoil” reported that its foreign assets are planned to be purchased by the Swiss company “Gunvor”, but it is not yet clear whether this applies to the Bulgarian plant.
US sanctions against “Lukoil” and “Rosneft”
The US President Donald Trump imposed sanctions on “Lukoil”, “Rosneft", and their subsidiaries on October 23. The list includes more than 30 units of both companies, including oil fields, gas fields, and refineries across the country.
In just two days, the shares of both companies have fallen, with Russiaʼs largest oil corporations losing a combined $5.2 billion. “Lukoil” shares fell 7.2%, resulting in a loss of $3.66 billion. “Rosneft” shares fell 3%, taking $1.56 billion with them.
“Rosneft” and “Lukoil” account for almost half of Russiaʼs daily oil production. For example, “Rosneft” generates approximately 17% of Russiaʼs budget revenues.
Author: Anastasia Zaikova
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