Bulgarian Parliament rejects motion on nationalisation of Lukoil assets
Bulgarian MPs voted on November 5 against a motion to mandate the country’s Cabinet to draft an investment proposal and enter into talks with the owners of Lukoil assets in Bulgaria for the acquisition of those assets.
The proposal, initially tabled by small nationalist-populist party Mech in January, received 42 votes in favour – from Mech and pro-Russian party Vuzrazhdane – and 80 against, while 70 MPs abstained.
Russian oil major Lukoil is subject to US Treasury Department Office of Foreign Assets Control (OFAC) sanctions, set to go into force on November 21. It owns Bulgaria’s sole oil refinery Lukoil Neftochim in Burgas, as well as Lukoil Bulgaria, which operates one of Bulgaria’s largest networks of petrol stations, which the Bulgarian government has said are affected by the US sanctions.
Lukoil, meanwhile, has already announced it reached an agreement for the sale of its international assets with oil trader Gunvor.
Bulgaria’s Parliament has already legislated rules for any sale of Lukoil assets in the country, requiring clearance from the State Agency for National Security (SANS) and the Cabinet. That bill was vetoed by President Roumen Radev earlier on November 5.
Despite the National Assembly rejecting Mech’s motion on the acquisition of Lukoil assets, reports in Bulgarian media on November 5 claimed that the ruling coalition mulled passing amendments allowing the Cabinet to appoint a special manager of Lukoil assets in Bulgaria.
The reports claimed that this manager would have wide-ranging powers, including approving the sale of assets, without their decisions being subject to administrative or judicial oversight.
(Photo: parliament.bg)
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