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.

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: Bulgaria, derogation, Lukoil, oil

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