site.btaMRF-New Beginning Leader Insists that State Buy Lukoil Neftohim Refinery

MRF - New Beginning Floor Leader Delyan Peevski Wednesday insisted that the State should buy the Lukoil Neftohim Burgas refinery. There currently are issues with the refinery, he told journalists in Parliament. In his words, the refinery is worth BGN 3 billion. 

Earlier on Wednesday, Morality, Unity, Honour (MECh) leader Radostin Vasilev too insisted on the State buying the refinery.

Peevski went on to say that Lukoil Neftohim Burgas will be shut down for several months as part of planned repairs. In his words, the State should intervene immediately to check whether there will be enough fuel reserves for the market and "whether this is not yet another provocation from Russia towards us: to stop Lukoil before selling it to someone."

Peevski argued that at present, the best decision is for the State to buy Lukoil, given that it has a golden share and there is a National Assembly resolution that a permission is required when a buyer is found. It is easiest for the State to buy Lukoil now and seek partners later, or operate the refinery on its own. Bulgarians should have cheap fuels, Peevski argued.

According to him, the State could find money for the refinery through a State-guaranteed loan with 20% co-funding for banks. Given the profits, such a loan would be repaid within several years.

In December, caretaker Energy Minister Vladimir Malinov commented on Lukoil's refinery by saying that the State is following the sale process closely but cannot interfere directly in the change of the refinery's ownership as the State has limited rights under the share it holds in Lukoil Neftohim Burgas.