site.btaTax Chief Rumen Spetsov Appointed Special Administrator for Lukoil's Bulgarian Companies

The Bulgarian government adopted a decision on Friday appointing Rumen Spetsov as special commercial administrator to oversee Russian oil company Lukoil's four operations in Bulgaria. Up until now, Spetsov has been Executive Director of the National Revenue Agency. The decision was adopted without a meeting and announced in a press release hours after the news of Spetsov's nomination for the post was reported by Economy and Industry Minister Petar Dilov following an extraordinary meeting of the Security Council under the Council of Ministers.

With new US sanctions on Lukoil and Rosneft due to take effect on November 21, Bulgaria amended its Act on Administrative Regulation of Economic Activities Associated with Oil and Petroleum Products at first and second reading on November 7, expanding the powers of the figure of the special commercial administrator of a critical infrastructure facility. The changes are intended to support Bulgaria's case in upcoming talks with the US regarding the sanctions. The amendments were published in the State Gazette after surviving a presidential veto.

On Friday, after Spetsov's nomination and before his appointment, Justice Minister Georgi Georgiev told journalists that Spetsov is expected to be registered in the Commercial Register for his new position by Monday at the latest.

GERB leader Boyko Borissov said he hopes that Bulgaria will receive a six-month derogation, similar to Germany’s in response to the US sanctions against Lukoil, "so that we can do everything that needs to be done without any haste".

Political reactions

Ilian Iontchev MP of BSP - United Left commented that Bulgaria had already had some good news on Friday - that Britain has paused sanctions to allow Lukoil's Bulgarian subsidiaries to operate until February 14, which clearly shows the decisions of the National Assembly and the government were correct. He added that Sofia expects the United States to also grant such a waiver in a very short timeframe, allowing Lukoil to continue operating.

According to Justice Minister Georgi Georgiev, a warning was received about the suspension of payments by "certain Bulgarian banks", as well as all bank card transactions involving entities linked to sanctioned entities such as Lukoil—not from November 21, but earlier, within the coming week. "This required swift, decisive, and urgent measures, which we took at the earliest opportunity," Georgiev told a briefing at the Council of Ministers. He added that, beginning this very day, the government has the authority under the new powers granted to the special representative, to take action.

Continue the Change leader Assen Vassilev commented that making Rumen Spetsov special administrator for Lukoil's companies in Bulgaria is "a rather bad joke". Spetsov was appointed to collect taxes, not to manage a refinery, Vassilev argued. He commented that Spetsov does not meet the requirement for the special commercial administrator to have at least five years of experience in the petroleum industry and the management of assets in that industry, introduced in 2023.

MP Yordan Todorov (Vazrazhdane) told journalists it has become clear that "a theft" of Lukoil's assets in Bulgaria is underway. According to Vazrazhdane, the Bulgarian state is not acting as a sovereign regulator but as an executor of decisions made by MP Delyan Peevski, leader of the Movement for Rights and Freedoms – New Beginning.

Vazrazhdane also said they are seeking support among the other parliamentary groups that did not support the October 7 amendments that expand the authority of the special commercial administrator. The party believes that the excessive and uncontrolled powers of the special commercial administrator to dispose of Lukoil's assets without time limits contradict the Constitution and the principle of free enterprise enshrined therein.

"State has obligations" to keep refinery going

Opening Friday's Security Council meeting, Prime Minister Rosen Zhelyazkov said that the State has obligations to safeguard the uninterrupted operation of the Lukoil Neftochim refinery in Burgas, the only oil refinery in Bulgaria, which is part of the country’s critical infrastructure. The meeting heard reports from the relevant ministers, followed by a proposal to the Council of Ministers to appoint a special administrator.

The governmental Security Council meeting was preceded by a question-time session in the National Assembly, at which Deputy Prime Minister and Minister of Innovation and Growth Tomislav Donchev said the government is well-prepared to handle the Lukoil situation and already has a plan. Donchev described the upcoming negotiations with the US as a critical stage. "I expect news in the coming days about what will unfold over the next five days," he added. The Deputy PM assured the lawmakers that Bulgaria will not face a fuel crisis.