site.btaLukoil Asset Sales in Bulgaria to Require Cabinet Approval and Security Clearance, MPs Decide

The sale of assets belonging to Russian oil company Lukoil in Bulgaria will only be permitted with a decision by the Council of Ministers and a positive opinion from the State Agency for National Security (SANS), Parliament decided at first reading here on Thursday. 

The amendments to the Investment Promotion Act were tabled by MPs from GERB-UDF, Movement for Rights and Freedoms – New Beginning, BSP–United Left, and There Is Such a People. The bill passed with 114 votes in favour, 83 against, and two abstentions. 

Under the proposed legislation, SANS must carry out a prior investigation and issue a written opinion before any transactions involving the transfer of shares or equity in Lukoil Bulgaria EOOD, Lukoil Neftochim Burgas AD, Lukoil Aviation Bulgaria EOOD, and Sustainable Energy Supply OOD are executed. The requirement also covers company rights, shares or equity in other legal entities within their ownership structures, whether registered in Bulgaria or in a third country, and owned by Lukoil OAO (Russia) or related parties. 

The restrictions further apply to disposals involving real estate, movable property, and equipment used for refining, production, storage, and sale of oil and oil products. 

Any such transactions may only proceed with a Council of Ministers decision and a positive SANS assessment. Deals carried out without Cabinet approval will be deemed null and void, the draft amendments specify. 

Parliament also voted to shorten the deadline for submitting proposals between first and second reading to three days.