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Bulgarian lawmakers lay groundwork for possible nationalization of Lukoil plant

The bill provides for the possibility of introducing external management of the Lukoil plant under circumstances that threaten national security, public order and the delivery of critical resources

SOFIA, January 13. /TASS/. Bulgarian authorities have provided a legal basis for the possible nationalization of the Lukoil Neftochim Burgas refinery.

On Friday, legislators from the National Assembly of Bulgaria by a majority of votes adopted the relevant amendments to the law on the administrative regulation of economic activities related to oil and petroleum products in the second, final reading. The session was broadcast on the parliament’s official website.

The bill provides for the possibility of introducing external management of the Lukoil plant under circumstances that threaten national security, public order and the delivery of critical resources. The country’s Economy and Industry Minister is authorized to appoint a special commercial manager at the plant. He is appointed for six months and his powers can be extended up to a year. The commercial manager is in charge of operational management, taking actions to eliminate violations and preserve the property of the company. At the same time, the owners of the enterprise do not have the right to interfere with the activities of the commercial manager.

During the meeting, the authors of the bill - representatives of the Democratic Bulgaria coalition - emphasized that Bulgaria should ensure economic activity related to the processing of oil and oil products, keeping in mind the restrictive measures against Russia, which were taken because of the conflict in Ukraine. In particular, this is needed should the owners of critical infrastructure for some reason want to limit the activities of the enterprise.

Representatives of the Revival political party characterized the law as an attempt to nationalize Lukoil. Delyan Dobrev from the Citizens for European Development of Bulgaria party noted that the law can only be applied in times of crisis.

The management of the Lukoil Neftochim Burgas oil refinery has not yet responded to a request by TASS to comment on the decision of the Bulgarian lawmakers.

Exception from restrictions

In early December, as an exception agreed on with the European Commission, the interim government of Bulgaria allowed the fulfillment of contracts for the purchase, import and transfer of Russian crude oil delivered to the country by sea. Nevertheless, it decided to ban the sale of petroleum products made from Russian oil to third countries, including other EU states, from March 5, 2023. This, however, allows the plant to continue to operate at full capacity until March 5.

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