Bulgaria to Allow Black Sea Refinery to Export Oil Products

SEATTLE (Oil Monster): Bulgaria announced that it will allow Russian oil refinery to export oil products despite EU bans, which are likely to take effect soon. Accordingly, a Black Sea refinery owned by Russian oil company will be allowed to export oil products to the European Union countries until the end of 2024. Any ban would harm the country’s economy, the government officials noted.

According to the agreement between Bulgarian authorities and Russian company Lukoil, the company has been allowed to transfer all production, revenues and taxes to be paid in Bulgaria, starting January 2023. The tax collection from Lukoil’s operations is projected at around 100 million levs in 2022 and 700 million in 2023.

ALSO READ:

Crude Oil Exports from Russia's Black Sea Novorossiik Port Resume After Storm

Oil Rebounds from Early Plunge After Saudis Deny OPEC+ Output Report

The deal is beneficial to both the parties. It is expected to provide an additional 350 million-euro boost to Bulgaria's budget. As for the company, it will help Lukoil’s facility to thwart a planned embargo by EU on most Russian products. The refinery operations are likely to be impacted if exports are prohibited, noted Ilshat Sharafutdinov. CEO, Lukoil.

The Lukoil Neftochim Burgas refinery expects to process over 7 million tonnes of crude oil this year. Normally, it exports more than 50% of its fuels and other end-products.

It must be noted that the previous Bulgarian administration had demanded limiting the sales from the refinery to just the domestic market.