Illustration, Photo: Reuters
The Bulgarian parliament today passed a law placing the Russian group Lukoil’s refinery in Burgas, on the Black Sea, under state control.
This is a consequence of US sanctions imposed in October against the Russian oil giant, which have raised concerns in the Bulgarian government that the sanctions will force the closure of the Russian refinery, the largest company in Bulgaria with a turnover of 4,68 billion euros in 2024.
The US sanctions, which will come into effect on November 21, “will lead to the cessation of the refinery’s operations (…) due to the refusal of all parties to make payments to companies belonging to Lukoil,” explained members of the majority party when they submitted the bill, passed under an expedited procedure.
Lukoil indirectly owns 99,85 percent of the Neftohim refinery in Burgas.
The Bulgarian government will appoint a special administrator to manage the company. He will be authorized to sell shares “after a market assessment” with government approval, Bulgarian lawmakers decided.
During the debates, the opposition accused the ruling majority of rushing the legislation and that the meeting of the Assembly’s Energy Committee lasted barely 30 seconds.
They also expressed concern about the possibility of the manager selling shares, as this could lead to legal action against Bulgaria.
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