PM reconfirms that there is interest in sale of Burgas oil refinery

Prime Minister Nikolay Denkov Thursday reconfirmed that there is interest in the sale of the Lukoil Neftochim oil refinery in the Bulgarian coastal city of Burgas. Approached by the press on the sidelines of an event at the Bulgarian Academy of Science in Sofia, he also commented criticism by President Rumen Radev regarding a new fee that Bulgaria introduced on Russian gas transits and the effect it will have no gas transmission and storage operator Bulgartransgaz.

The information about a contemplated change of ownership of Lukoil Neftochim first appeared in a Financial Times story which quoted Bulgarian Finance Minister Assen Vassilev as saying that “there probably is an economic benefit to switching the ownership of the refinery” and that the government has "indications of interest.” The next day, Lukoil Neftochim main shareholder Litasco SA said that it has not received offers for the refinery and is not in negotiations on the matter. 

The Prime Minister said Thursday that the two positions don't clash: "I said there is interest and there indeed is. Litasco said that they are not in negotiations. These are two different stages [of the process]."

As for the new Russian gas transit fee, he said that the revenue it will generate for the public purse will depend on the quantities of natural gas entering the country. "I would rather not guess what the effect on the market will be. We explained clearly that the new tax will make the price of piped gas from Russia comparable to that of liquefied gas. There will be competition which, I hope, will be in consumers' best interest," he said.

The Prime Minister reiterated that he sees no way the new fee will impact adversely Bulgartransgaz. "Bulgartransgaz has nothing to do with the payment of this fee. The fees will be payable by Gazprom. As the Finance Minister pointed out [in the FT story], one of the aims to reduce the profits of Gazprom because they are used to finance the war in Ukraine," he added.