They want permission from Brussels for the state to continue buying fuel from Neftohim
“Lukoil Bulgaria” and “Lukoil Neftohim Burgas” submitted to EU sanctions against Russia because of the war in Ukraine.
This is stated in the reasons of the acting finance minister, Rositsa Velkova, with which she proposes to the government to request a derogation from the European Commission on part of the sanctions.
The caretaker government will ask Brussels for permission to continue buying fuel from Lukoil for the state’s official vehicles at least until the end of 2024, according to Velkova’s proposal, which has been published for public consultation.
“When an inspection was carried out by the administration of the Ministry of Finance and
The Customs Agency has established that one of the main suppliers of fuel used by the contracting parties – Lukoil Bulgaria Ltd. falls within the scope of the restrictive measures of the Regulation, as well as that a significant part of the fuel supply for OMV Bulgaria Ltd. “Petrol” AD and “SHEL Bulgaria” EAD (the other contractors under RS), is carried out through intermediaries, by the fuel producer – “Lukoil Neftohim Burgas” AD – a company that falls under the sanctions of the Regulation,” writes Velkova in her reasons.
“The provision of a significant part of fuel supplies for the public and sector contracting parties in Bulgaria, regardless of the contractor of the concluded contract, is in practice carried out directly or through an intermediary with fuels produced by Lukoil Neftohim Burgas AD. This circumstance in practice leads to impossibility on the part of the public or sectoral contracting authorities to guarantee that the framework agreements or contracts concluded by them with the subject of fuel supply will be in accordance with the restrictions of the Regulation, given the fact that the main source of fuel on the Bulgarian market is the refinery in the city of Burgas Insofar as the Bulgarian retail market mainly sells fuels produced by Lukoil Neftohim Burgas AD, this means, in practice, that the potential executors of contracts for the supply of fuels in Bulgaria cannot guarantee the absence of the circumstances under Article 5k of The Regulation, in relation to the entire fuel supply chain, when concluding or executing a contract for the awarding of public contracts”, the acting finance minister also wrote in her reasons.
Currently, the state has a framework agreement worth BGN 90 million for the purchase of fuels, which is valid until March 2023, with “OMV Bulgaria” OOD, “Petrol” AD, “SHEL Bulgaria” EAD and “Lukoil Bulgaria” EOOD . Separately, state offices have contracts for another BGN 305 million.
If Bulgaria does not get a derogation from the sanctions, state cars will actually run out of fuel, warns Rositsa Velkova in her reasons for the Council of Ministers. According to her, the derogation should apply to contracts concluded before June 4 of this year.
Until that moment, Lukoil-Bulgaria and the Burgas refinery were not aware that sanctions had been imposed. On the contrary, “Neftohim” was even specifically excluded from the ban on the import of Russian oil.