Parliament Curbed the Powers of the Special Commercial Administrator at “Lukoil Neftochim”

Parliament has restricted the powers of the special commercial administrator at “Lukoil Neftochim” so that he can no longer dispose of the private company’s assets, after adopting amendments at second reading to the Law on Administrative Regulation of Economic Activities Related to Oil and Petroleum Products.

The special commercial administrator will no longer have the right to unilaterally dispose of the assets of “Lukoil Neftochim”. He will now be subject to judicial oversight if he decides to carry out transactions involving the assets of the private company and its subsidiaries.

Until now, he had the authority to sell assets even without the consent of the owners. Under the amendments adopted today, the Minister of Economy, the Prosecutor General, the government, as well as any shareholder or partner, may bring a claim to establish the nullity of such a transaction. Additional oversight of the administrator’s activity is being introduced.

Konstantin Prodanov, chairman of the budget committee, said that the special commercial administrator provides a monthly report on the activities of each company under his management to the Minister of Economy, within one week after the end of the respective month.

The amendments passed in the plenary session with almost no debate, with only “Vazrazhdane” expressing reservations.

Tsoncho Ganev of Vazrazhane: “When you have a claim filed for 3 billion euros or 6 billion leva, the most logical thing is to start talks to purchase the refinery and buy it. The government should have started negotiations to acquire the refinery as quickly as possible from day one.”

Slavi Vasilev, Progressive Bulgaria: “Be assured that the government of Radev and this majority will vigilantly protect the interests of Bulgarian citizens with expertise.”

Just one day after the government replaced Rumen Spetsov with Evgeni Simeonov as special commercial administrator at “Lukoil Neftochim”, criticism of his appointment followed. From “Democratic Bulgaria”, concerns were raised regarding his experience and professional qualifications.

• Evgeny Simeonov is the new special commercial manager of Lukoil

Bozhidar Bozhanov of Democratic Bulgaria: “The issue is that the person appointed as special administrator does not appear to have the necessary competence and experience to manage a refinery.”

At present, “Lukoil Neftochim” is operating under a derogation regime. British sanctions have been postponed until mid-August. The United States has also extended the derogation period until the autumn.