Lukoil may sell its assets in Bulgaria, including the largest refinery, due to restrictions on oil imports from russia
Kyiv • UNN
Lukoil intends to sell its business in Bulgaria, including the region's largest refinery, following the adoption of Bulgarian laws aimed at reducing energy dependence on russia, which Lukoil criticizes as politicized and harmful to its operations. Bulgaria denies discrimination and is seeking to keep the refinery open, possibly with a new strategic investor.
Lukoil is going to sell the largest oil refinery in Southeast Europe refinery and other assets in Bulgaria, as the local authorities intend to reduce the Balkan country's energy dependence on Russia. Bloomberg writes, UNN reports.
Details
As early as this week, Bulgaria's parliament may approve new rules that provide for suspension of all imports from March and reduction of exports of some products of certain refined products. If these legislative amendments are adopted, Lukoil's refinery Lukoil's refinery will be forced to shut down and probably sell the business. The company's assets include This includes 220 gas stations and 9 oil depots, as well as ship and aircraft bunkering facilities. The Russian company announced this last month.
Russia's second largest oil company is currently reviewing its strategy in in connection with the adoption of new laws. According to the Russians, this is allegedly "an artificially inflated political storm" that harms their business around the world. And all this is due to the adoption of "discriminatory laws and other unfair, biased political decisions against refineries," the Russian producer said in a statement.
Bulgarian Finance Minister Assen Vasilev rejected the accusations of of discrimination. He told reporters that the government will need to ensure the operation of the refinery, possibly with a strategic investor.
Context
Earlier this year, Bulgarian lawmakers approved a proposal to gradual reduction of imports of Russian crude oil, bringing the country in line with other European Union members. This month, the ruling coalition unveiled plans to to stop these imports as early as March. This has forced Naftochim, a Lukoil refinery on the Black Sea coast Lukoil's refinery on the Black Sea coast, to look for alternative sources of fuel.
In July, the government in Sofia already terminated Lukoil's lease of the refinery port, and earlier this year, antitrust authorities fined the Bulgarian branches of the of the company for a total of 263 million leva ($146 million) for for abuse of dominant position.
With these measures, Bulgaria is going to finally stop importing oil from Russia oil and exports of refined products.
For reference
Lukoil's plant on the Black Sea coast in Bulgaria - Naftochim, is the largest oil refinery in Southeast Europe.
Lukoil bought the former state-owned company Neftekhim in 1999 and has since invested more than $3.4 billion. Today, the Russian company is the main supplier to fuel retailers in Bulgaria, as well as the owner of the of an oil pipeline that runs through most of the country. Bulgaria is not yet free from the European Union's rules prohibiting the import of Russian oil under sanctions against russia.
