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Bulgarian PM doubts efficiency of government management for Lukoil refinery

Lukoil announced earlier a start for revising its strategy in respect of assets in Bulgaria, including an option of selling the business "in view of significant changes of conditions for operation of group companies" in Bulgaria

SOFIA, December 11. /TASS/. Prime Minister of Bulgaria expressed doubts that government authorities would be able to efficiently manage assets of the Russian oil major Lukoil in the country.

"If a government representative [in the Board of Directors] has to take control over the Lukoil’s refinery, oil shortage could be the greatest danger for the refinery, which may have grave consequences for the fuel market in the country, and the whole society will lose from that," the prime minister said in an interview with the BTV television channel.

"The problem is that Lukoil is a company having a large mix of petroleum products, oil, opportunities for its delivery and the retail chain that can always provide for its delivery. If the government assumes this control, it would be in a weaker position and in a very unstable situation. The best option is if Lukoil provides for the plant sale and the transitional period and we would see for the plant not to fall into improper hands," Denkov stressed.

Lukoil announced earlier a start for revising its strategy in respect of assets in Bulgaria, including an option of selling the business "in view of significant changes of conditions for operation of group companies" in Bulgaria. The Russian company stated that "the revision of the strategy is the consequence of discriminatory laws and other unfair and biased decisions in respect of the plant made by Bulgarian government authorities."

Lukoil owns a refinery in Burgas, a chain of retail sites and oil depots, marine and air bunkering business in Bulgaria.

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