bulgaria-is-accelerating-the-elimination-of-the-sanctions-loophole-that-brought-russia-a-billion-euros

Bulgaria accelerates end of sanctions loophole that earned Russia a billion euros

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Bulgaria will lift an exemption from EU sanctions against Russia six months earlier than planned - just days after it was revealed that the loophole allowed the Kremlin to earn an additional 1 billion euros for its war effort in Ukraine, Politico reports, UNN writes

Details

Parties supporting the government's ruling coalition announced the move on Friday after a fierce debate sparked by a Politico story that said Bulgaria had been letting millions of barrels of Moscow oil through to a Russian-owned refinery on its territory, which then exported various types of oil products abroad, particularly to the EU.

The refinery was able to transport the Russian oil because Bulgaria was granted the exclusive right to not comply with the EU ban on imports of crude oil from Russia by sea, a move ostensibly designed to protect the country from energy shortages. The government said it will now end the ban on March 1 instead of the previous, voluntary deadline of October 31.

"With March 1 as the deadline for the retreat, it is guaranteed that there will be no shocks on the domestic fuel market," said Bulgarian Finance Minister Asen Vasilev, who, as the newspaper points out, was personally involved in negotiating the sanctions exemption in Brussels last year during the restrictions.

Vasilev also said he would support the suspension of export quotas from the Lukoil-owned refinery on January 1 to help cut "money going to Russia."

Addendum

In addition to the estimated €983 million Russia has received through this loophole in production and export fees, it has also generated nearly €500 million in profits since February for the refinery owner, Lukoil, Russia's largest private oil company, according to a secret analysis prepared for Bulgaria's parliament and seen by Politico.

Julia Shramko

Economy

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