Lukoil Bulgaria is undertaking final actions of closing the only oil refinery in Bulgaria, located in the Black Sea city of Burgas.

The information was announced in person by the company's CEO, Valentin Zlatev, who spoke at a special press conference Thursday, saying it was expected work will stop in the next 20 to 30 hours.

The CEO explained that this means Lukoil will need about a month and a half and about BGN 7 M to restart operations at the plant.

Zlatev firmly denied information about the lack of accountability on fuels in the company, calling it rumors. He pointed out that Lukoil always abided by the law and, despite the delay in installing electronic data devices, it has a working system used until now by revenue agents to register the fuel amounts.

BGN 16 M so far have been invested in the devices with another BGN 11 M needed and there had not been enough time since the publication of the Ordinance on Tax Warehouses one year ago for all needed devices to be installed simultaneously at the refinery, according to the CEO.

"There are short-hand notes from this conversation where, in a joint protocol, they give us fixed deadlines of August 15, September 15, October 15 until December 31 when we, under their control, would finish the started work. I have no idea what happened since 10 am on July 21 until July 22nd when Gen. Tanov (Director of the Customs Agency) signed the order and sent it. We received it in the evening of July 26th. We had a meeting with Finance Minister, Simeon Djankov, where we established he was "foreign" to this issue. He wanted to hear our opinion and the opinion of the Customs. The talk was postponed for 10 am today (Thursday). Regretfully, this meeting was denied for reasons unknown to us," Zlatev said.

The Lukoil Bulgaria Head assured there would not be a fuel crisis at gas stations in the next 20 to 30 days, during which a supply from Romania was most likely to be secured. He, however, explained there would be a problem with jet fuel since the refinery is the only producer of such fuel in the region.

Zlatev stressed that in the last 11 years of being in Bulgaria, Lukoil had been the biggest tax payer in the country, the largest exporter and investor, contributing to the State treasury BNG 21.33 B in taxes and USD 2.35 B in investments.

"Lukoil had always supported the effort of all cabinets to make the oil business in the country transparent and for everyone to fulfill its obligations to the Bulgarian business. Attempts to insinuate Lukoil has contributed to the increase of contraband are wrong and unjust. A number of politicians made false declarations. We kept silent because we think such discussions are unprofessional. Socialist leader, Sergey Stanishev, obviously blinded by the joy of recently becoming a father, had forgotten there are no planned renovations at the refinery this year. I do not talk about his relations with Prime Minister, Boyko Borisov, and he should not talk about mine," Zlatev said referring to reports about his long-time friendship with the PM, adding they knew each other for 30 years and this had nothing to do with work and the issue.

The CEO pointed out the company wass aware that thousands of people work at the plant and their families depend on them thus Lukoil would never deprive them from their salaries by attempting to violate the law.

Zlatev further stated that it was "logical" for the company to take the matter to Court.

He stressed he did not suspect Djankov in having a "special" attitude towards Lukoil since in previous talks, he had never seen such indications, but accused Economy and Energy Minister, Traicho Traikov, of making statements about the refinery without ever visiting it.

"I am not angry with him, to the contrary, I wish him a second term, maybe then he will learn more about the energy sector," the CEO stated.

Zlatev reiterated he had no idea for what reasons his Thursday meeting with Djankov was canceled.

The conflict between the Customs Agency and Lukoil Neftochim escalated Wednesday after the refinery ended up with a revoked fuel production and distribution license.

As a result, the company was forces to start phasing out capacities and to halt supplies to the market.

The measure sparked widely divergent political reactions, with the Bulgarian Socialist Party (BSP) terming the events "a theatrical play" due to the notorious close friendship between Zlatev and Borisov, while right-wing forces interpreted the move as "a declaration of war against monopoly".

Prime Minister Borisov himself hinted that a compromise was possible.

The sanctions against Lukoil were imposed after it failed to install the mandatory measuring devices by June 26.

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