Derogation for the import of Russian oil for processing at Lukoil Neftohim Bourgas remains in place

The derogation for Lukoil Neftohim Bourgas's work with Russian oil remains in place for now, but on the condition that the refinery pays 1.5 billion BGN in taxes and unpaid excess profits. This was agreed by the parties supporting the cabinet with the prime minister and the finance minister at a meeting in the National Assembly on October 23.

The collection of the unpaid taxes from Lukoil will allow for compensations in the prices of mass fuels. According to the calculations of GERB-UDF and the Movement for Rights and Freedoms it comes to 0,73 BGN per litre of diesel or petrol.

Lukoil has promised to pay 500 million BGN in taxes and deposit 1 billion in unpaid excess profits into the energy security fund. It is from this BGN 1 billion that any compensation to end users will be paid.

"The most important thing is for people to be compensated and this will not be money from the budget, it will be money from Lukoil , that is, we will take millions from Lukoil if they keep their promise, because we are a legislative body, we do not manage the processes in this country. We will take from Lukoil the 1 billion that has been accumulated so far and these funds will be given to the people as compensation for the fuel. So the fuel at the gas stations will not cost 3 BGN, and after compensation will cost 2 BGN,"s aid Delyan Dobrev - chairman of the Committee on energy from the GERB-UDF group.

"Now they will be taken from Lukoil, not from taxes, and they will not be 0,25 BGN., but will be several times more – 0,73 BGN.," Dobrev clarified.

"We had a meeting and reached a dialogue on the issue and we are satisfied, as soon as we managed to speed up the collection of a billion and a half for the Bulgarian citizens, we are satisfied. As long as we manage to work for the people and achieve these results, we will support this government. If it does not happen, we have made it clear to you that we will not support it. Mr. Petkov is waiting for the changes that we have clarified to be drafted, they will be sent to him by the end of the day and we have to submit them together tomorrow," said Delyan Peevski - co-chair of the MRF parliamentary group.

"What was voted as a much higher tax, because Russian oil is used, the state should collect it and collect it as quickly as possible. And actually I think the fruitful part of this meeting was not to focus on the derogation, as was the idea of seven days, but to focus on tax collection," said Kirill Petkov, co-chair of “We Continue the Change - Democratic Bulgaria”.

An extraordinary sitting of the National Assembly will be held on Friday. The three parties supporting the government hope the President's veto on the energy law will be overridden.

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At a meeting in August, the Bulgarian cabinet discussed the potential effects of a possible early termination of the derogation for the import of Russian oil and petroleum products for processing at Lukoil Neftohim in the costal city of Bourgas.

In mid-2022, the European Commission granted Bulgaria an exemption from the European oil embargo on Russia, which which allows Bulgaria to continue importing Russian crude oil until the end of 2024. Before the Bulgarian Parliament’s summer recess, GERB submitted a proposal for its early termination.

GERB leader Boyko Borissov on Sunday, October 22, said the two largest parliamentary groups would discuss on Monday GERB's proposal for withdrawing Lukoil's derogation from the EU ban on supplies and processing of Russian oil. On Friday, GERB said it would move a draft resolution in Parliament next week giving the government one week to withdraw the exemption of the Lukoil Neftochim refinery in Bourgas.

On Saturday, the Chairman of the Parliamentary Energy Committee, Delyan Dobrev, (of GERB-UDF) said this would be the third time a proposal for withdrawing Lukoil's exemption would be made.

Delyan Peevski of MRF said in a press release on Saturday that his parliamentary group would support GERB's proposal for ending Lukoil's derogation "because this is a matter of strategic importance to Bulgaria and its citizens". The vote on the motion will show clearly whether the parties and coalitions are on the side of the public and Euro-Atlanticism or on the side of Lukoil, Russia and the financing of its war against Ukraine, he said.

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