Chair of BICA: “The issue with the refinery in Bulgaria is anything but harmless”

Rumen Radev, former Minister of Energy and Chair of the Board of the Bulgarian Industrial Capital Association (BICA), commented on possible solutions to the Lukoil case after Washington imposed sanctions on the Russian oil company.

“The issue with the refinery in Bulgaria is anything but harmless. Ultimately, it concerns the operational functioning of the company, regardless of ownership structure. What I doubt will work is the simplistic insistence on some form of derogation — for the simple reason that nothing has changed in terms of capital structure, shareholders, and so on,” said Radev.

He did not rule out the possibility of Donald Trump’s administration revising its stance or allowing certain postponements of the sanctions’ effects.

“From a purely pragmatic point of view, let me remind you that at the end of 2022 a specialised law was adopted regulating operators dealing with oil products. It introduced the concept of a special commercial administrator, who — under certain circumstances and following a report and recommendation from an advisory council to the Minister of Economy and Industry, coordinated with the State Agency for National Security (SANS) and other security structures — could take over operational management. In such a case, Bulgaria could potentially request a deferral of certain sanctions,” he explained.

Radev emphasised that this would not amount to expropriation of ownership:

“On the other hand, this mechanism grants enormous power — but also enormous responsibility — to the special commercial administrator. That responsibility extends both to the shareholders and to the state.”

Addressing concerns about whether Bulgaria could face a situation similar to Serbia’s recent fuel shortages, Radev stated:

“If we compare Bulgaria and Serbia directly, Serbia is in a rather unenviable position. We are not in that situation. Still, my colleagues and the Energy Minister are right to call for a review within the Security Council under the Council of Ministers — to monitor fuel reserves and inspect state stocks. These are steps we have already rehearsed and planned for, and I am confident that the current government will follow them diligently.”