site.btaSales of Lukoil Assets in Bulgaria to Require Government Approval and Security Clearance

The Parliamentary Committee on Energy decided on Thursday that the sale of assets of the Russian oil company Lukoil in Bulgaria will be allowed only after a decision of the Council of Ministers and a positive opinion from the State Agency for National Security (SANS). The committee approved at second reading amendments to the Investment Promotion Act submitted by MPs from GERB-UDF, the Movement for Rights and Freedoms (MRF) - New Beginning, BSP-United Left, and There Is Such a People (TISP).

Under the amendments, SANS will conduct a preliminary review and issue a written opinion before any transaction involving shares or company stakes in Lukoil Bulgaria EOOD, Lukoil Neftochim Burgas AD, Lukoil Aviation Bulgaria EOOD, and Sustainable Energy Supply OOD. The requirement also applies to transactions involving shares or stakes in other legal entities within their ownership structure, registered either in Bulgaria or in third countries, when owned by Lukoil OAO (Russia) or by affiliated parties. 

The same rule will apply to transactions involving real estate, movable property, or facilities intended for the processing, production, storage, and sale of oil and petroleum products.

The law provides that any disposal of assets carried out without a decision by the Council of Ministers and without a positive opinion from SANS will be deemed null and void.

The committee decided that the law will enter into force on the day it is published in the State Gazette.

The amendments are particularly relevant after the United States Department of the Treasury announced late on Wednesday new restrictions targeting Rosneft, Lukoil, and their subsidiaries.