'Litasco' to Lift Restrictions on Oil Supplies to Lukoil Neftochim after Talks with Bulgarian Government

Litasco will lift restrictions on oil supplies to Lukoil Neftochim Burgas, following talks between the Swiss company and Prime Minister Rumen Radev, Bulgarian officials announced on June 30.

After the meeting, Deputy Prime Minister and Economy Minister Alexander Pulev said the move marked the first step towards an out-of-court settlement that could lead to the withdrawal of arbitration proceedings against Bulgaria.

The meeting between PM Radev and representatives of Litasco and Lukoil Neftochim lasted nearly an hour. Speaking afterwards, MP Pulev said the first step had now been taken towards avoiding a potential €3 billion arbitration claim against Bulgaria.

In 2023, Litasco granted a loan to its subsidiary, Lukoil Neftochim. Earlier this year, however, the parent company demanded early repayment of the loan and imposed restrictions preventing the refinery from purchasing crude oil from companies registered in Switzerland.

Deputy PM Alexander Pulev: Lukoil's Conduct Is of Vital Importance to the Protection of Bulgarian Interests

Evgeni Simeonov, special administrator of Lukoil Neftochim:

"What we managed to agree today is that the restrictions imposed by Litasco, which were requested before the court in Geneva, will be lifted. This means that, from tomorrow, Lukoil Neftochim Burgas will once again be able to purchase crude oil from all the necessary counterparties registered in Switzerland. In recent months, uncertainty over supplies forced the refinery to process heavier grades of crude, resulting in significant operational problems at the facilities and making the plant's work more difficult."

Representatives of the Swiss company said the talks marked the first genuine dialogue with the Bulgarian government.

Inna Darii, Vice-President of Lukoil International and Litasco manager:

"Following a very constructive discussion with the government, we decided to take steps to unblock the loans in Geneva. We will continue the dialogue and work towards solutions that are acceptable to both sides."

Pulev described the agreement as an important breakthrough.

"This is a clear first step towards reaching an out-of-court settlement that protects the interests of both parties. It was a critical meeting. For the first time, we demonstrated an approach that protects competition and private property. We have also committed to maintaining an active dialogue aimed at resolving the arbitration dispute in full."

Photos: BTA

Earlier in June, Mr Pulev warned that Bulgaria faced the risk of being ordered to pay €3 billion in damages after Litasco launched arbitration proceedings over the government's appointment of a special administrator for Lukoil's four companies in Bulgaria.