Bulgaria is preparing a law allowing the seizure and sale of Lukoil’s refineries
6 November 10:12
Bulgarian authorities are drafting amendments to legislation that will allow the transfer of control over the Lukoil-owned oil refinery in Burgas to a new owner to protect the company from US sanctions, local media reported, "Komersant Ukrainian".
The Burgas petrochemical plant is a key asset of Lukoil’s foreign network, which, along with Rosneft, was subject to new Washington restrictions in October.
According to the draft law, which was first reported by Mediapool, if a manager is appointed, he or she will control the sale of the plant, while Lukoil will not have a vote and will not be able to appeal the decision.
According to Martin Vladimirov of the Bulgarian Center for the Study of Democracy, the appointment of an interim manager to take over the operational management of the country’s only refinery will ensure energy security, prevent supply disruptions, and help avoid secondary sanctions.
US sanctions
Earlier this year, the US government decided to tighten sanctions against Russia over the war in Ukraine. It imposed restrictions on two Russian oil giants, Rosneft and Lukoil.
The sanctions are expected to come into effect on November 20, but they are already having an impact on the Russian economy.
In particular, Indian refineries have announced their intention to reduce purchases of Russian oil.
At the same time, it has recently been reported that Lukoil may sell its foreign assets to the Swiss company Gunvor.
