Parliament Rejects Nationalization of Lukoil Neftohim Burgas

The National Assembly rejected the proposal to nationalize two significant companies in the energy sector. The draft resolution, introduced by a group of MPs from the party "Moral, Unity, Honor" (MECH), envisioned the acquisition by the Bulgarian state of "Lukoil Neftohim Burgas" AD and "Lukoil-Bulgaria" EOOD. After heated debates and voting, the proposal received the support of 42 MPs, while 80 voted against, and 70 abstained.

The decision to reject the proposal, introduced on January 28 by Radostin Vasilev (MECH) and a group of colleagues, comes at a crucial moment for the country's energy sector. The initiative envisioned the Council of Ministers preparing and proposing to the parliament a draft for investment expenditures for the acquisition of the two companies, as well as initiating negotiations with their owners.

Support for nationalization came from "Vazrazhdane" and MECH, as well as one MP from GERB-SDS. The opposition to the project was consolidated by GERB-SDS and "Alliance for Rights and Freedoms", joined by six from "We Continue the Change-Democratic Bulgaria" (PP-DB), two from "BSP-United Left", and two from "Velichie". "DPS-New Beginning" and "There Is Such a People" preferred to abstain, along with another MP from GERB-SDS, 17 from PP-DB, 13 from BSP, and one independent MP.

During the debates in the plenary hall, the tension was palpable. Yordan Todorov ("Vazrazhdane") expressed his concerns that the ruling party would introduce an extraordinary point on the agenda related to the appointment of a special manager at "Lukoil". "The option with a special manager is a temporary solution, which in no way solves the problems," he commented, raising the question of the future of strategically important assets. He added: "Here was the opportunity for our country, if it were governed by true statesmen, to buy these assets."

Nikola Dimitrov, also from "Vazrazhdane", posed a sharp question: "If the state is a bad manager, why should a special manager of the refinery be appointed?"

Hristo Rastashki (MECH) noted that countries like Hungary have their own refinery and understand the complexity of the situation well. He emphasized that the acquisition would provide an opportunity for a derogation from the US for the refinery in Burgas.

Radostin Vasilev, leader of MECH, also supported the idea of acquisition, stressing that a derogation would be possible if the negotiations for nationalization were a fact. He expressed regret that only MECH and "Vazrazhdane" supported the draft resolution, adding that half of the MPs in the hall were not present at the debates.

The parliament's decision comes against the backdrop of a tense situation in the sector. Last week, the National Assembly introduced a temporary ban on the export and intra-community supplies of petroleum products, mainly diesel and aviation fuel, to member states of the European Union (EU). The measure was justified by the need to guarantee the country's energy security, the stability of the domestic fuel market, and the sanctions imposed by the US against the Russian company "Lukoil".

The Chairman of the Energy Committee in the National Assembly, Pavela Mitova ("There Is Such a People"), in an interview for the program "Sunday 150" on BNR, stated that the Bulgarian state is in constant contact with European partners and the United States because of the complex situation with the refinery in Burgas. When asked whether Bulgaria had requested a derogation from the US, Mitova replied: "We have asked questions to the Office of Foreign Assets Control (OFAC) with several different action options and are awaiting their answers." Regarding the possibility of appointing a special manager at "Lukoil", she commented that this is one of the discussed options.