Bulgaria demands right to veto sale of Russian Burgas refinery

November

12

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The Bulgarian government demands more power over decisions at Lukoil’s key refinery in the Black Sea port of Burgas, a key strategic site for Bulgaria and the Balkan peninsula.

Bulgaria sold the Balkans’ largest refinery to Lukoil 25 years ago but retained a “golden share” that gives the Bulgarian government the right to have a representative on the company’s board.

However, according to Energy Minister Vladimir Malinov, the state’s rights through ownership of the so-called “golden share” in Lukoil Neftochim Burgas are too limited.

In other words, the state wants to have a veto over the sale of Lukoil Neftochim.

Malinov’s comments were prompted by reports that a refinery sale to a Qatari-British consortium was being prepared, which Lukoil denies.

“I will insist that we have more opportunities for information when ownership changes. The state should have the right to express an opinion on these types of processes when it comes to a company that is part of the country’s national security,” he added.

On Tuesday, the Financial Times published information, confirmed by Euractiv’s sources in Sofia, that a deal was in the pipeline.

According to unofficial information, Lukoil has sent a letter to President Vladimir Putin, who must approve the deal.

Euractiv’s sources add that the letter states that Lukoil will also seek the approval of the Bulgarian government before finalising the deal.

With its refinery, the Russian company is the largest fuel producer on the Balkan Peninsula and a significant exporter of aviation fuel to almost all countries.

In 2022, fuels from Lukoil’s Bulgarian refinery played an important role in supporting the Ukrainian army, as a number of Bulgarian companies, with the support of the government in Sofia, organised the export of diesel fuel to Kyiv. The Russian company said it had nothing to do with the deals to supply the Russian army.

“I believe that the change of ownership of such a strategic company affects both the fuel market and the budget revenues. Therefore, it is only natural that the state also has a say in such a potential deal,” the Bulgarian energy minister said.

According to the letter sent to Putin’s office, Azerbaijan’s state-owned energy company Socar, Kazakhstan’s state-owned energy group KazMunayGas and Turkey’s oil company Opet were among the finalists.

All of these companies have strong financial ties to Lukoil.

(Krassen Nikolov | Euractiv.bg)

Source: Euractiv.com

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