Bulgaria takes control of Lukoil assets by appointing an administrator. Russia's vehement reaction
Bulgaria's government on Friday appointed an administrator to take over the operations of the local subsidiary of Russian oil company Lukoil, in a move to avoid US sanctions on the subsidiary.
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administrator “Rumen Speţov, whom I have appointed, meets all the legal criteria. Therefore, I believe that he will ensure effective control over this critical infrastructure”said the Bulgarian Minister of Economy, Petar Dilov, at a press conference.
Under these conditions, the US Treasury will be able to allow “rapid” the company to continue its activity, completed the Bulgarian Minister of Energy, Jecho Stankov, quoted by Agerpres.
The Burgas refinery, owned by Lukoil, is the only refinery in Bulgaria and the largest in the Balkans. The administrator appointed by the government in Sofia will have the power to sell assets with the government's approval and will be immune from any criminal prosecution.
Russia denounces an expropriation
But the operation attracted criticism, both from the president of Bulgaria, Rumen Radev, and from Russia. President Radev, a retired general labeled pro-Russian by his opponents, on Wednesday refused to enact a legislative amendment that would have empowered the government to appoint an administrator tasked with managing and selling Lukoil refinery assets, but parliament overrode his veto in a second reading vote on the same amendment.
Taking control of the Lukoil refinery entails a huge financial risk for Bulgaria if the Russian company takes legal action, the Bulgarian president said on Friday.
Also, the Russian ambassador in Sofia, Eleonora Mitrofanova, denounced “an expropriation law” which “sets a dangerous precedent”in an interview given to the Russian agency TASS before the Bulgarian president's veto.
On the other hand, the Bulgarian opposition suspects the government of seeking to transfer Lukoil's assets to a businessman close to power, an idea denied by the governing coalition.
Bulgaria requested an exception from the US
The Bulgarian energy minister confirmed on Wednesday that Bulgaria, following the example of Germany and Hungary, requested an exception from the US regarding the application of American sanctions imposed on the Russian oil company Lukoil, without specifying the period for which the exception was requested.
According to the aforementioned minister, the request was submitted to Washington at the end of October, a few days after the administration of US President Donald Trump announced sanctions against Lukoil and Rosneft, two of the main Russian oil companies, sanctions applicable starting from November 21.
Trump hopes that through these sanctions, and especially through the secondary sanctions with which he threatens the companies and third countries that would continue to do business with the two Russian companies, Russia's energy revenues will be diminished, in order to be implicitly diminished the revenues for financing the army and therefore accept the end of the war in Ukraine in the terms desired by it and its Western supporters.
Following the US decision on sanctions, the Lukoil company had announced that it would sell its international assets to the trader Gunvor, but the transaction failed because it was not approved by the US Treasury.
