site.btaLukoil Neftochim Definitively Required to Process Only Non-Russian Oil from October 1, 2024 Onward
From October 1, 2024 onward, the Lukoil Neftochim refinery in the Bulgarian Black Sea city of Burgas should process only non-Russian oil. The restriction was imposed by the National Assembly in Sofia on Thursday as the MPs granted second-reading approval for amendments to the Act on Control over the Implementation of the Restrictive Measures in View of Russia's Actions Destabilizing the Situation in Ukraine.
The bill of amendment was moved by MPs Boyko Borissov (GERB), Kiril Petkov and Hristo Ivanov (Continue the Change - Democratic Bulgaria), and Delyan Peevski (Movement for Rights and Freedoms).
In 2022, the European Commission granted Bulgaria a derogation from an EU prohibition on the supplies and processing of crude oil originating in or exported from Russia. The derogation was given on account of Bulgaria's specific geographic exposure. It applies until the end of 2024.
Under the amendments approved by the Bulgarian legislators on Thursday, Lukoil Neftochim should abandon Russian oil input in stages. The share of crude oil of Russian origin processed by the refinery should be no more than 80% until the end of 2023, no more than 75% until March 31, 2024, no more than 50% until June 30, 2024, and no more than 25% until September 30, 2024. In the meantime, Neftochim's fuel sales should not fall below the average level of the last five whole financial years.
The new legislation gives the green light to start a procedure to appoint a special commercial administrator at Lukoil Neftochim. The special commercial administrator will be appointed by the Council of Ministers at the proposal of the minister of economy and industry following an opinion statement by the Council on Security under the Council of Ministers. The administrator should take over within two weeks of their nomination, for a term of six months.