site.btaPM Denkov Threatens Lawsuit over Allegations that He Benefits from Lukoil

Prime Minister Nikolay Denkov will go to court because of the widespread rumors that he and other ministers and MPs are "at the mercy of Lukoil" and receive millions for each month that the refinery processes Russian oil, the press centre of the Council of Ministers said Wednesday. “I am taking direct action against the people who claim such things. I have already decided," Prime Minister was adamant to journalists.

Denkov denied that he indicated specific amounts that Lukoil should contribute to the state budget as excess profit tax: "Much of the information that was provided by other participants (in the leadership meeting on the derogation last Monday) is actually disinformation," the Prime Minister said.

The publicly stated deadline of one week for payment of refinery taxes is also false. Lukoil has committed to pay the amounts owed by the end of the year, as provided for in the legislation. “I know there are expectations, but the government and I personally have to abide by the laws. Lukoil is committed to complying with the laws as they currently stand. The fact that someone has made "sloppy" laws does not mean that we should break the law to fulfill someone's wishes," said Denkov. He noted that the accusations that the government did not collect the taxes from Lukoil come from people who are thus trying to hide that they have adopted legal texts according to which this cannot happen.

Attempts to escalate the issue create two risks, the Prime Minister stressed. An abrupt end to the derogation would leave the refinery without raw material, as there is no way to secure non-Russian oil within seven or 10 days. With the introduction of an interim period of 30 days, Lukoil can threaten to raise prices to create problems for Bulgaria. "That is why, on the basis of the reports of both the ministries and the security services, a schedule was prepared, which would remove Russian oil gradually, not all at once," explained Denkov. This will give time to conclude long-term contracts with which the refinery can secure a supply of non-Russian oil. "In this way, we will be sure that there will be no tension on the fuel market in Bulgaria," added the Prime Minister.