PM Radev: I Hope Arbitration Over Lukoil Can Be Avoided

I hope arbitration over the Lukoil issue can be avoided." Prime Minister Rumen Radev said on July 3 during parliamentary question time while commenting on issues related to the refinery and the agreements reached on crude oil supplies. According to him, there has been progress towards easing supply arrangements, which could have a positive impact on the operations of Lukoil Neftochim.

Slavi Vassilev, Progressive Bulgaria: "Regarding Lukoil Neftochim and Litasco – how have the government's negotiations changed the situation for the refinery? Do you believe the talks have helped facilitate the supply of crude oil? Do you think this will have an impact on end consumers? As for the 21st sanctions package – Bulgaria said it would object if Alekperov were included. Do you thinkthis helped the talks with Litasco?"

Rumen Radev, Prime Minister: "Whether there was a regular dialogue – there was no such dialogue with Lukoil Bulgaria and its special commercial administrator at the time. Due to a substantial outstanding loan owed by Lukoil Neftochim, an attachment order had been imposed preventing the purchase of crude oil from companies registered in Switzerland. We subsequently learned, after a new special commercial administrator was appointed, that the refinery had been forced to process heavy grades of crude oil. This leads to the rapid clogging of the installations and longer tanker routes. We reached an agreement for Litasco to lift the attachment order. The refinery will now be able to source crude oil with the required characteristics more easily. Whether Bulgaria's reservations regarding the 21st sanctions package will help us avoid arbitration, I cannot guarantee. There has been movement in that direction. I hope arbitration will be avoided."