"Lukoil": We fulfill our obligations to the Treasury, we do not participate in corruption schemes

Lukoil Neftochim on October 25 reacted with a position to the ongoing political tensions around the company, the taxes it owes and the derogation for Russian oil.

The company says it paid more than BGN 1 billion and BGN 300 million in taxes this year and last year, and that it complies with all of its obligations to the budget. The company points out that it is additionally subject to 55% profit tax and describes as absurd the claims that it owes BGN 1 billion in tax.

"Lukoil" also dismissed as untrue claims that it exports petroleum products made from Russian oil to the EU and denied any involvement in corruption schemes.

Here is the company's full position:

"In response to the ongoing political pressure, the management of LUKOIL Neftohim Burgas AD most responsibly declares that it fulfils all its obligations to the budget of the Republic of Bulgaria and pays all taxes stipulated by law within the established deadlines. The total amount of taxes paid to the Treasury for 2022 amounts to nearly BGN 685 million, of which BGN 90 million are corporate tax and temporary solidarity contribution.

For the first nine months of the current year, the Company has paid nearly BGN 647 million, of which BGN 153 million was paid in advance corporate tax and temporary solidarity contribution. "LUKOIL Neftohim Burgas AD is probably the only economic operator in the Republic of Bulgaria which is subject to 55% profit tax (corporate tax and temporary solidarity contribution) by special law. And the statements to the media about an additional tax of BGN 1 billion are downright absurd. Firstly, the difference between Brent and Urals quotations is not 30$/barrel for a long time and to date is 6-7$/barrel and, secondly, - in fulfillment of its obligations arising from the 6th package of sanctions. The company has planned to switch to processing non-Russian oils from 2023.

Suggestions that LUKOIL Neftohim Burgas AD violates the European regulation by exporting petroleum products produced from Russian oil to EU countries are categorically untrue and this can be confirmed by the Customs Agency. Equally unfounded and untrue are the allegations that LUKOIL is involved in corruption schemes with politicians and government officials. The management of LUKOIL Neftohim Burgas AD insists that all unsubstantiated and ungrounded accusations and slanders be stopped and states that it will use its right to defend its interests and business reputation by all available and legal means."

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