site.btaOpposition Accuse Incumbents of Lacking Plan, Causing Panic, They Reply Fuel Export Ban Is Preventive Measure

During a parliamentary debate on Friday, the opposition accused the incumbents of causing panic by tabling on Friday afternoon a bill temporarily banning the export and intra-Community supply of petroleum products, mainly diesel and aviation fuel, to European Union (EU) Member States. The ruling party reassured that the state reserve has sufficient stocks in accordance with the requirements of the law and emphasized that the measure to restrict exports is preventive, in the interest of national security. It was necessary because of the observed trend of increasing fuel exports to countries, especially in the region, where prices are higher.

The bill was passed with 135 votes in favour, 4 against, and 42 abstentions after being added to Friday's agenda extraordinarily. The bill was tabled by Delian Dobrev (GERB-UDF), Stanislav Anastassov (MRF-New Beginning), Pavela Mitova (There Is Such a People), and Atanas Atanasov (BSP-United Left). The ban was motivated by the need to ensure Bulgaria's energy security and the stability of the domestic fuel market in view of the sanctions recently imposed by the US against the Russian company Lukoil. 

At the start of the debate, Bogdan Bogdanov MP of Continue the Change - Democratic Bulgaria (CC-DB) said that currently on the table is one of Bulgaria's most significant industrial assets as Lukoil operates not only the oil refinery in Burgas (on the Black Sea) but also the accompanying infrastructure. Following the imposed US sanctions, a situation has clearly arisen in which these assets are at risk – whether an adequate buyer will be found or whether they will cease to function, he argued. These are issues that will take time to resolve, but Bulgaria should have been prepared to respond by now, Bogdanov commented. In his words, at the moment there is a panic reaction to restrict fuel exports from Bulgaria, based on a provision that formally declares a state of emergency in Bulgaria. He again asked the Prime Minister, the relevant ministers, and the acting Chairman of the State Agency for National Security to explain what the Government is doing to ensure that there will be fuel on the Bulgarian market and that the refinery will continue to operate. 

According to Tsoncho Ganev MP of Vazrazhdane, the power holders wanted to snatch this business but forgot that nothing depends on them. "The serious violations in the state reserve are becoming apparent; Bulgaria must purchase the refinery; it must be Bulgarian," Ganev argued. In his words, the state reserves will last for seven days to meet the country's fuel needs. "You are trying to hide the crisis in which you are putting us," the opposition MP told the incumbents. 

Parliamentary Budget and Finance Committee Chair Delian Dobrev of GERB-UDF replied that had Vazrazhdane been in power, they would have known that fuels are stored in tax warehouses under video surveillance in real time, and "every second we know how much fuel in the country has been released into the commercial network." In his words, that fuel can last some three months. The state reserve are the fuels which are stored in the tax warehouses at the moment, Dobrev specified. The state reserve should have fuels for three months, but the exact amount will be determined after a check, he added.

Yordan Tsonev of MRF - New Beginning said that they are monitoring the fuel markets and how the sanctions against Russian companies Lukoil and Rosneft are affecting the fuel prices in Europe. There is significant danger not only to Bulgaria but other European countries as well where the two sanctioned companies have assets, for supply chains to be interrupted, resulting in a problem on the fuel markets. "In this case, we are obliged to take such preventive measures when there is a danger. Analysis of public data showed a trend towards a serious increase in exports to markets where there is already a fuel shortage, such as Serbia, for example. This prompted the Government to take this step today. There is no panic about fuel in Bulgaria, there is no evidence that we have reserves for less time, but to be sure, we are also proposing an inspection of reserves, as we believe that the law has not been violated," Tsonev explained.

Krasimir Manov of MECh said that the ruling majority has no control over what is happening.

According to Bogdanov, the bigger issue is the 90-day reserve that operators are required to maintain, 50% of which must be kept in Bulgaria and 50% outside the country. The question is how these reserves will reach Bulgaria if necessary, and how prices will not rise as high as in the region.

Ivaylo Mirchev MP of CC-DB said that his parliamentary group will back the ban but has certain concerns, mostly related to the text on customs. He described the figures for the 90-day fuel reserves as shocking; they are companies that do not add to the reserve as required.

Assen Vassilev MP of CC-DB asked whether the incumbents have discussed the ban with the EU to ensure there will not be countermeasures for fuel imports from Europe.

"Currently, 50% of Bulgaria's reserves are abroad. If we limit our exports to the Netherlands, Hungary, and other EU countries, can we be sure that if we need these reserves, they will not restrict them as a countermeasure, thus putting our reserves at risk," he continued. "Your behaviour betrays panic because you probably do not have a plan and do not know what to do," the former finance minister told the Government. 

"Every drop we have in storage in another European country will be returned when our country wants it," Tsonev assured the MPs. 

Dobrev added that the CC's proposal to keep 100% of the reserves in Bulgaria was lobbyist and in favour of Lukoil. "Why didn't Assen Vassilev propose that the entire gold reserve be kept in Bulgaria? To me, CC is clearly financed by Lukoil," he commented. 
 
Vassilev said he would sue Dobrev for "these lies." "Next time you go to a gas station, fill up with gold," Vassilev replied.