Lukoil Bulgaria Threatens to Sue Risk Management Lab over Damaging Allegations

Business » ENERGY | May 28, 2015, Thursday // 08:38
Bulgaria: Lukoil Bulgaria Threatens to Sue Risk Management Lab over Damaging Allegations Photo by BGNES

Lukoil has threatened to sue the Risk Management Lab at the New Bulgarian University over a recent report stating that the Burgas-based Lukoil Neftochim refinery deprived the state budget of over BGN 1 B through inflated prices.

According to a report of the lab, headed by Ivan Kostov, former Prime Minister and former leader of the right-wing Democrats for Strong Bulgaria (DSB), the practice benefitted the Russian Lukoil Group, at the same time causing significant damage to Bulgarian households and institutions and eroding the competitiveness of Bulgarian companies.

The lab accuses the company of calculating production costs on the basis of the price of Brent crude oil instead of the cheaper Urals crude oil imported by Neftochim for processing at the refinery in Burgas.

According to Lukoil’s reply, as cited by, the report is full of misinformation and manipulative interpretation.

The fuel retailer claims that it is buying the raw material at market prices and that the lab has gotten wrong the rates to which the two types of crude oil are tied.

Lukoil also publishes data on the supply cost and market price of Urals crude oil in the period end-August 2014- end-December 2014.

The company insists that the prices at which it buys crude oil are neither higher nor lower than the tariffs at which any other refinery in the EU purchases supplies of Urals crude oil.

The distribution of false allegations which damage the reputation of a company is a punishable offence, Lukoil emphasizes.

Lukoil says it will use any legal means possible to protect its business reputation, including at a Bulgarian or an international court, if necessary.

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Tags: brent, Risk Management Lab, Democrats for Strong Bulgaria, Ivan Kostov, Lukoil Neftochim Burgas, oil refinery, Lukoil Bulgaria, Lukoil Neftochim, Lukoil

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