site.btaLukoil Neftochim Burgas Warns that Abandoning Russian Crude Oil Threatens Its Stability and Creates Market Risks
The Lukoil Neftochim Burgas oil refinery warned that the decision of Parliament to stop using Russian crude oil "threatens the stability of the largest oil refinery in the Balkans and creates risks for the fuel market in this country".
The oil refinery said so in a position that it put out shortly after Parliament passed on principle revisions to the Act on Control over the Implementation of the Restrictive Measures in View of Russia's Actions Destabilizing the Situation in Ukraine, which, among other things, gives the government 30 days from the entry into force of the law to terminate a derogation from an EU prohibition on the supplies and processing of crude oil originating in or exported from Russia.
The derogation from the embargo on oil imports was granted by the European Commission to Bulgaria in 2022 due to its specific geographic exposure and applies until the end of 2024.
The refinery says that the derogation allowed it to offer the EU's cheapest fuel and pay hefty taxes to the public purse of Bulgaria.
Also, it says that it has prepared a plan for phased transition to alternative sources of crude oil and submitted it to the Energy Ministry as required.
It says, though, that the 30-day deadline for moving away from Russian oil is unrealistic and will make it impossible to guarantee "the normal operation of the company".