site.btaUPDATED Sale of Lukoil Assets in Bulgaria to Require Approval from State Security Agency and Cabinet, Parliamentary Committees Decide at First Reading

The sale of assets of the Russian oil company Lukoil in Bulgaria will be possible only after a positive opinion from the State Agency for National Security (SANS) and a decision by the Council of Ministers, under draft legislation adopted at first reading during a joint meeting of Parliament’s Energy Committee and the Economic Policy and Innovation Committee. 

The amendments were introduced through a bill to amend and supplement the Investment Promotion Act, submitted by Delyan Dobrev (GERB-UDF), Stanislav Anastassov (MRF - New Beginning), Ivan Ibrishimov (BSP - United Left) and Pavela Mitova (There Is Such a People, TISP).

The Energy Committee voted in favour of the proposal with 13 votes in favour, none against, and one abstention, while the Economic Policy Committee approved it with 11 votes in favour, three against, and one abstention.

The bill was presented by Delyan Dobrev and Stanislav Anastassov. 

Dobrev said that the changes introduce two stages of approval before any disposal of Lukoil’s assets in Bulgaria. First, a security screening by SANS followed by a Cabinet decision. “If SANS gives a negative opinion, the process stops and does not reach the Council of Ministers,” Dobrev said. 

“In recent weeks there has been information suggesting that such a transaction is being prepared. Bulgaria must protect its national interest, given the strategic importance of this company,” he added. Dobrev noted that the country’s experience with the temporary derogations for Russian oil imports had shown the need for legal safeguards to prevent similar difficulties in the future.

Stanislav Anastassov said the matter concerns Bulgaria’s national security, noting that “Lukoil has achieved significant horizontal and vertical integration, creating potential risks for supply security. We must ensure that any new owner is a strategic partner from the EU or NATO.”

Under the proposed amendments, SANS will conduct preliminary investigations and issue written opinions before any transfer of shares, company stakes, or assets belonging to Lukoil Bulgaria EOOD, Lukoil Neftochim Burgas AD, Lukoil Aviation Bulgaria EOOD, and Sustainable Energy Supply OOD, as well as related entities controlled directly or indirectly by Lukoil OAO (Russia).

The agency will also review planned sales of real estate, movable assets, and installations used for the processing, storage, and distribution of oil and petroleum products.

Transactions involving these assets will be valid only after Cabinet approval, following a positive SANS opinion. Any deals made in violation of the law will be declared null and void.

The sponsors state that the amendments are designed to ensure that Lukoil’s Bulgarian assets can be sold or leased only to strategic investors capable of maintaining the continuous operation of the facilities.

“The dual control mechanism, through SANS and the Council of Ministers, will help avoid mistakes from the past, when the refinery was sold to Lukoil OAO solely on the basis of an opinion from the National Security Service, later revised multiple times for unclear reasons,” the explanatory memorandum reads.