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Lukoil sees no grounds for revoking concession on Bulgarian terminal, plans to litigate

The company claims that regular inspections of the terminal by the country’s state bodies did not reveal any violations or departure from the concession’s terms or regulatory requirements

MOSCOW, July 20. /TASS/. Russian oil major Lukoil refutes all allegations of violations at the Rossenets Port Terminal in Bulgaria, sees no grounds for terminating the concession contract for it, and plans to file a lawsuit following statements by several Bulgarian lawmakers on terminating the agreement, according to a statement released by Lukoil Neftochim Burgas.

"Lukoil Neftochim Burgas declares that all public allegations against us of smuggling and other violations on the territory of the Rossenets terminal do not comport with reality. The company has always fully met its obligations under the 35-year concession contract concluded with the Republic of Bulgaria in 2011, and sees no grounds for its termination," the statement reads.

The company claims that regular inspections of the terminal by Bulgarian regulators failed to identify any violations or deviations from the concession terms or regulatory requirements, as confirmed by the respective protocols, as well as the regulator’s daily monitoring. "The baseless accusations by representatives of certain political parties and parliamentary groupings may negatively influence the image of the brand and corporate reputation of our company, which is still regarded as one of the best employers, partners and customers in the European Union by most of its employees, clients and suppliers. Due to this, Lukoil Neftochim Burgas intends to seek legal redress to protect its business reputation," according to the statement.

Accounting of volumes of oil and petroleum products supplied to and from the terminal is automated and metering data is transmitted to the customs authority in real time, while the terminal is under 24/7 video surveillance, and members of the National Assembly of Bulgaria can request any information on the terminal from the Bulgarian National Customs Agency, the company said.

"Lukoil Neftochim Burgas also vigorously denies any accusations of ideological bias. We are in full and strict compliance with the legislation of the Republic of Bulgaria and the European Union," the company noted. The group’s aggregate investments in Bulgaria over the past 20 years exceed $4.1 bln, and total around $14 bln in EU countries overall.

Earlier, Bulgarian media said that the parliamentary groups Continue the Change and Democratic Bulgaria suggested that Lukoil’s concession on the Rossenets terminal be revoked.