Bulgaria's Lukoil Faces Production Shutdown Threat Due to Export Quota Shift

Business » ENERGY | November 18, 2023, Saturday // 14:25
Bulgaria: Bulgaria's Lukoil Faces Production Shutdown Threat Due to Export Quota Shift

Lukoil Neftohim Burgas has raised concerns over the announced agreement between ruling parties regarding the derogation for importing Russian oil. The refinery warns that the suspension of quotas for exporting oil products could force a halt in production, leading to logistical risks and a potential fuel supply crisis in Bulgaria.

The agreement, set to eliminate quotas for oil product exports from January 1, 2024, and cease the derogation from March 1, poses a significant threat to Lukoil's operations. The company highlights the risk of overflowing warehouses and the possibility of a forced shutdown of production, which could jeopardize the country's fuel supply.

In response, Lukoil calls for urgent dialogue with governmental institutions to find a viable solution that mitigates risks without disrupting production.

However, Finance Minister Assen Vassilev has contested Lukoil's claims regarding the flow of funds to Russia through the refinery. He clarified that the profit tax expected from Lukoil amounts to approximately BGN 400 million, emphasizing that a collaborative solution is necessary to safeguard the interests of both the company and Bulgaria's economy.

This brewing concern underscores the urgency of finding a balanced resolution to prevent potential disruptions in the oil industry.

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Tags: Bulgaria, derogation, Lukoil, oil

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