Bulgaria wants to change legislation to take control of Lukoil refineries
Photo: EPA

Bulgaria's parliament is preparing legislative changes that would allow the confiscation of Lukoil's oil refinery in Burgas and its transfer to a new owner, report local media.

The draft law provides for the appointment of an external manager to oversee the sale of Lukoil Neftochim Burgas. Lukoil will have no voting rights and will not be able to appeal the decision.

Pros in words former Prime Minister of Bulgaria, leader of the ruling GERB party Boyko Borisov"There is a lot of logic in this."

The appointment of a special manager to take over the operational management of the plant will help ensure energy security, prevent supply disruptions and avoid secondary sanctions, believes martin Vladimirov, Director for Energy and Climate at the Bulgarian Center for the Study of Democracy.

Pros data According to the media, BP (British Petroleum) is showing great interest in becoming Lukoil's special manager in Bulgaria.

After US imposes sanctions against Lukoil, Bulgarian Parliament approved amendments to the law on investmentswhich paved the way for the sale of Bulgarian assets to a Russian company. However, President Rumen Radev vetoed the law.

The sale process itself may take only a month, as, in accordance with US sanctions requirements (OFAC), countries with a stake in Lukoil's assets exceeding 50% must settle the ownership issue by November 21 this year.

on November 1, Politico reported that Bulgaria is considering the possibility of to apply for exemption from of new US sanctions against Russia's Lukoil.

  • At the end of October Lukoil announced has agreed to sell its large international network of oil wells, refineries and gas stations, as well as its trading portfolio to Gunvor Group. The terms of the deal were not disclosed.
  • In an interview with Bloomberg, Torbjörn Thornqvist, CEO and major owner of commodities trader Gunvor, said that he was not going to return Lukoil's foreign assets even after the sanctions are lifted. That is why Western regulators have there is no reason not to approve the deal.