“Democratic Bulgaria” called on the parliamentary groups to support the bill submitted by it to the National Assembly, which enables the state to impose operational control over “Lukoil Neftohim Burgas”. In a declaration on behalf of the „Democratic Bulgaria“ parliamentary group, announced from the parliamentary rostrum by Ivaylo Mirchev, Bulgaria is called to protect its national interest and dignity and to win back a primordial Bulgarian territory that has become a “Putin enclave”.
The document popularized as the „Lukoil Law“ is actually a draft law on amendments and additions to the Law on the Administrative Regulation of Economic Activities Related to Oil and Petroleum Products. And it allows the state to step in to protect national interests over critical energy infrastructure, regardless of who owns the company.
By placing the Burgas refinery under state control, following the example of Germany and Italy, our country will be able to guarantee its energy independence. This will force „Lukoil“ to lower the prices of fuel at gas stations, and hence also of food products, and to pay taxes in full, especially after the state takes back the Rosenets port terminal, the declaration points out.
Here is the full text of the declaration without editorial intervention:
“Bulgaria must behave as a dignified country, especially in conditions of a war that threatens the whole of Europe. Threats by a private company to single-handedly shut down the refinery, which is an object of national security, are unacceptable. It is unacceptable for „Lukoil“ to twist Bulgaria’s hands and put jobs, revenues in the budget and the payment of taxes as a bargaining chip against continuing to export petroleum products in violation of EU sanctions. It is even more unacceptable for the Bulgarian government to bend under such pressure.
Therefore, „Democratic Bulgaria“ submitted a legislative proposal at the end of last week, through which the state would have the opportunity to take operational control over „Lukoil Neftohim Burgas“. This is part of the package of measures for the deputization of the country, announced by „Democratic Bulgaria“ in the spring of 2022, and continues our efforts to guarantee national security, in particular Bulgaria’s energy security.
According to our proposal, in the presence of a threat to national security, abuse of a monopoly position or restrictive measures imposed by the EU, UN, etc., the state will have the opportunity to take over the operational management of the company. The assumption of control should be done by appointing a special representative from the state. Bringing the refinery under operational control will have 3 key benefits:
- will reduce the prices of fuel at gas stations, and from there also of food products;
- – will force Lukoil to pay the full amount of taxes owed to the treasury, which has not happened since 2007;
- – after the port terminal „Rosenets“ returns to state control, the state will finally know what quantities of oil enter the country.
The operational control will break the closed circle of „Litasco“, through which the prices are artificially increased. At the same time, the ban on the export of Russian oil will mean lower prices at gas stations in our country.
The operational management will provide the state with all the leverage to force Lukoil to pay the full amount of taxes owed to the treasury, which has not happened since 2007. We have foreseen that after taking office the special commercial manager will commission a full audit of the activities of the company.
This is a step towards returning state control over the Rosenets port terminal. If serious violations are found, this will also be an argument for terminating the concession of the port terminal „Rosenets“ – the private border of „Lukoil“ in Bulgaria – which the cabinet recently extended, without discussion, for another 24 years.
For years, „Democratic Bulgaria“ has been making efforts for the state to take its due and to force „Lukoil“ to pay its real taxes to the budget – long-term legal battles with the National Revenue Agency for the provision of audit acts, initiation of a parliamentary commission in the 47th A National Assembly to establish all the facts related to the supply of crude oil, as well as specific legislative proposals for the transparency of the activities of tax warehouses to increase competition and lead to wider access and lower prices for consumers.
“Democratic Bulgaria” calls on all political forces to support the bill. It protects our national interest and our national dignity. It is high time to recapture a primeval Bulgarian territory that has become a Putin enclave.”
