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21 Dec 2022, 11:47

Lukoil does not supply oil products to Ukraine, company’s CEO says

"The products from the refinery in Burgas will be sold on the domestic market of Bulgaria and other available destinations within the quotas for export to third countries established in the 9th EU sanctions package," the company’s CEO Vadim Vorobyov stressed

MOSCOW, December 21. /TASS/. Lukoil does not have any contracts to supply its petroleum products to the territory of Ukraine, and the company's plant in Bulgaria supplies petroleum products to the domestic market of the country within set export quotas, the company’s CEO Vadim Vorobyov told TASS.

"Lukoil does not have any contracts for the supply of its petroleum products to the territory of Ukraine. The products from the refinery in Burgas will be sold on the domestic market of Bulgaria and other available destinations within the quotas for export to third countries established in the 9th EU sanctions package," he said.

He was commenting on information that the ninth EU sanctions package contains a permit for the export of oil products of Russian origin from EU countries to Ukraine.

When asked about deliveries via the Druzhba oil pipeline, Vorobyov noted that a number of Russian companies carry out deliveries via that pipeline, since the embargo does not currently apply to pipeline deliveries.

"After sale, this oil and the oil products produced from it (in a similar way the Russian gas supplied to the EU and products from it) no longer belong to Russian companies," he noted.

Earlier Bulgarian National Radio reported that due to new sanctions, the Bulgarian Lukoil plant will retain the possibility of selling petroleum products only in Bulgaria or to Ukraine, and sales to EU countries and third countries will be prohibited starting on February 5, 2023.

The products allowed for export to Ukraine include jet fuel, various types of kerosene, oil, heavy fuel and others. For Bulgaria, the export of these fuels is allowed due to the need to limit risks to the environment. The Bulgarian authorities will have to make the final decision on the export of oil products. They must be sure that these products are only intended for consumption in Ukraine, or that their sale and delivery are not connected with an attempt to circumvent sanctions.

In early December, the Bulgarian authorities agreed with the European Commission that Bulgarian companies will be allowed to buy, import and transfer Russian oil shipped to the country by sea. At the same time, the authorities decided to ban the sale of petroleum products made from Russian oil to third countries, including other EU member states, starting March 5, 2023.