Wrap-up: GERB set on moving for early withdrawal of Lukoil's exemption from EU ban on russian oil

GERB leader Boyko Borissov Sunday said the parliamentary groups would discuss on Monday GERB's proposal for withdrawing Lukoil's derogation from the EU ban on supplies and processing of Russian oil. On Friday, GERB announced it would move a draft resolution in Parliament next week giving the government one week to withdraw the exemption of the Lukoil Neftochim refinery in the Black Sea city of Burgas.

The GERB leader asked why the price of petrol had not dropped, although an exemption from the EU ban has been in place since December 2022. "Fear is rising now because we will want the derogation cancelled in a week," he said. He criticized the government for not taking any steps to address rising fuel prices at a time when the oil price remains unchanged.

On Saturday, Parliamentary Energy Committee Chairman Delyan Dobrev (GERB-UDF) told reporters this would be the third time a proposal for withdrawing Lukoil's exemption would be made. This time, however, it will be moved by the whole parliamentary group, unlike before when he himself made the motion. Dobrev has claimed consistently that the derogation benefits Lukoil alone to the tune of billions of dollars, while Bulgarian customers have borne the brunt of high fuel prices.

Also on Saturday, Movement for Rights and Freedoms (MRF) Co-Floor Leader Delyan Peevski said in a press release his parliamentary group would back GERB's proposal for ending Lukoil's derogation "because this is a matter of strategic importance to Bulgaria and its citizens". Peevski also said: "The vote on the motion will show clearly whether the parties and coalitions are on the side of the public and Euro-Atlanticism or on the side of Lukoil, Russia and the financing of its war against Ukraine. The MRF will ask the Customs Agency and the National Revenue Agency on Monday to inform Parliament if Lukoil bypasses the EU's sanctions and if it pays taxes.

GERB Floor Leader Desislava Atanasova said on Friday: "We believe we must introduce the most liberal requirements for fuel storage and the State must appoint a special commercial administrator."

On September 28, Parliament decided that from October 1, 2024, the Lukoil Neftochim refinery must process only non-Russian oil. The motion, which brought forward the previously approved end of the derogation by three months, was made by MPs Boyko Borissov, Kiril Petkov and Hristo Ivanov (Continue the Change - Democratic Bulgaria), and Delyan Peevski (MRF).

Parliament also decided that a special commercial administrator will be appointed at Lukoil Neftochim by the Council of Ministers on a proposal by the minister of economy and industry following an opinion statement by the Council on Security under the Council of Ministers.

The government's position so far

Commenting on GERB's proposal that Russian oil imports should end in 2023 instead of in October 2024, Finance Minister Assen Vassilev told the Bulgarian National Radio on Sunday there is no guarantee that the oil refinery will be able to secure reliable supplies.

Earlier in October, Prime Minister Nikolay Denkov said the exemption for Russian oil supplies should not be reconsidered for the time being, as the phased introduction of non-Russian oil implies there is time to react if the situation changes. "For the moment we can proceed as planned," he said.