Bulgarian Energy Minister Unwavering in Battle with Lukoil

Business » ENERGY | August 1, 2011, Monday // 10:19
Bulgarian Energy Minister Unwavering in Battle with Lukoil: Bulgarian Energy Minister Unwavering in Battle with Lukoil Bulgaria's Economy and Energy Minister, Traicho Traikov, says corporations, not the cabinet, are responsible for the Lukoil license saga. Photo by BGNES

If even one plane does not take off over the lack of fuel, the only culprit will be the Lukoil Aviation company because it is bound by a contract to deliver kerosene to airports.

The statement was made by Bulgaria's Economy and Energy Minister, Traicho Traikov, who spoke Monday in an interview for the TV channel bTV, assuaging fears by saying that currently there isn't any threat of stopping flights.

According to Traikov, the responsibility for the events related to the revocation of Lukoil Bulgaria's license, the closure of the only refinery in the country, and a possible fuel crisis, belongs to people with ties to corporations, not the cabinet – people who signed the contract with Lukoil Aviation and those who failed to enforce the law at the refinery.

The Minister stressed there was no discord among the members of the cabinet regarding the issue with the revoked license, saying the Customs Agency is in charge of ensuring the rules are followed; the Agency accounts for its activities to Finance Minister, Simeon Djankov, who reports to Prime Minister, Boyko Borisov.

"All other Ministers are busy with their own sectors, but monitor closely the developments with Lukoil," Traikov concluded.

The Energy Minister further reiterated his Sunday statements before the Bulgarian National Radio, BNR that Bulgaria is prepared to log a counter claim against Russia's state nuclear company "Atomstroyexport," if it does not to withdraw its EUR 58 M claim at an arbitration court over delayed payments for its work on two nuclear reactors.

In the same Sunday interview, Traikov, announced that he Bulgarian government is calling an emergency meeting of the Monitoring Board of the Lukoil Bulgaria company.

The Minister reiterated there is no fuel crisis in the country, except for jet fuel, which is a problem and a commitment of Lukoil Aviation, whose license has not been revoked. Second, in this issue, comes the commitment of Lukoil Neftohim, which had 15 months to install the electronic measuring devices, and failed to do so, according to Traikov.

The Chair of the Association of Bulgarian Air Carriers, Svetoslav Yankulov, stated the jet fuel reserves, unblocked by the government Saturday, would last for just 3-4 days. He further informed that currently the situation is under control and all planes that needed fuel have been refueled, but pointed out there is still no permanent solution for the problem because if negotiations for deliveries from Greece and Romania fail, the reserves might be tapped into again.

Meanwhile, Lukoil Bulgaria informed in an official letter that it is halting supply of diesel fuel to the State Railroad Company, BDZ. The move is based on the Railroads' debt to Lukoil amounting to BGN 2.5 M.

On Saturday, the cabinet released 1 800 tons of jet fuel from the State reserve, destined for the airports of Varna and Burgas, where the summer season is in its peak. Additional volumes for Burgas will be also redirected from the airport in the second largest city of Plovdiv. The order of the cabinet is for the release of jet fuel, kept in the Lukoil Bulgaria warehouses, for a week-long consumption.

Traikov and Djankov count on import from abroad to secure normal supplies for gas stations while the Interior Ministry will continue to receive for a month longer the fuel it had already ordered from Lukoil.

On Friday, Borisov, announced that crisis headquarters will monitor the situation on Bulgaria's fuel market after the local refinery of Russian oil giant Lukoil was forced to halt operations with Traikov heading the headquarters.

Bulgaria's Neftochim, the only oil refinery in the country, controlled by Russia's giant Lukoil, started on Wednesday to reduce crude processing to effectively stop production after the customs office revoked its licenses.

Vanyo Tanov, Director of the Customs Agency, has explained that the refinery cannot operate without the required electronic measuring devices Lukoil failed to install in its storage facilities, and can deal only with the fuels already outside the plant.

Valentin Zlatev, CEO of Lukoil Bulgaria, has often been described as "the country's back seat ruler" and "the oil oligarch, who pulls the strings of the government".

He is suspected of being the man behind Bulgaria's Prime Minister Boyko Borisov.

Zlatev has strongly denied the allegations.

We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!

Energy » Be a reporter: Write and send your article
Tags: Lukoil Aviation, Minko Minkov, Association of Bulgarian Air Carriers, Svetoslav Yankulov, State Railroads, BDZ, debt, Economy and Energy Minister, excise storage, license, rule, Vanyo Tanov, Customs Agency, Lukoil, Valentin Zlatev, Boyko Borisov, Neftohim, refinery, Simeon Djankov, Neftochim, Bulgaria, summer season, fuel, aircraft, jet, Burgas, Varna, Black Sea cities, airports, Bulgarian, BEH, Russians, Bulgarian Energy Holding, Boyko, Borisov, Prime Minister, Kozloduy, emergency meeting, EU, Fukushima, tsunami, Earthquake, Japan, safety, reactor, nuclear, Atomstroyexport, Rosatom, Traicho, Traikov, Kozloduy NPP, NPP, Nuclear Power Plant, Belene NPP, sofia, Moscow, Belene, Bulgaria, Russia, power, plant, project, Krasimir, Parvanov, Simeon, Djankov, NEK, National Electric Company, Russia, Russian, HSBC, RWE, aviation, Traicho Traikov

Advertisement
Advertisement
Bulgaria news Novinite.com (Sofia News Agency - www.sofianewsagency.com) is unique with being a real time news provider in English that informs its readers about the latest Bulgarian news. The editorial staff also publishes a daily online newspaper "Sofia Morning News." Novinite.com (Sofia News Agency - www.sofianewsagency.com) and Sofia Morning News publish the latest economic, political and cultural news that take place in Bulgaria. Foreign media analysis on Bulgaria and World News in Brief are also part of the web site and the online newspaper. News Bulgaria