Russian Oil Giant to Sell Bulgarian Oil Refinery

It must be noted that Bulgaria had been heavily dependent on Russia for its imports of crude oil and natural gas till recently.

SEATTLE (Oil Monster): The Russian oil giant Lukoil announced that it is considering to sell its oil refinery in Bulgaria. This follows the plan by the government of the country to end imports of Russian crude oil, which the company called ‘discriminatory’.

The company statement noted that there has been a significant change in the operating conditions in Bulgaria. Consequently, the company has decided to undertake a review of its strategy with respect to its oil refinery asset. It is currently analysing various possible options, including the sale of the business, it said.

It must be noted that Bulgaria had been heavily dependent on Russia for its imports of crude oil and natural gas till recently. However, following Russia’s attack on Ukraine, the country has been trying to free itself from its overdependence on Russia.

Bulgaria was granted special permission by the EU bloc to run the refinery on Russian oil until 2024, amidst embargo on Russian crude. However, the country’s new government is not interested to continue with the exception. Also, the government has imposed 60% tax on Lukoil’s profits.

Lukoil, in a statement, noted that the Bulgarian authorities have been adopting discriminatory laws and unfair biased political decisions in connection with the refinery, which in turn has forced the company to seek alternatives.

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