Prime Minister Nikolay Denkov said that Lukoil would have to pay over 250 million euros in taxes, or otherwise Bulgaria will lift the exemption enabling the oil refinery to use crude imported from Russia despite a ban imposed by the EU in connection with the war against Ukraine.
Additionally, Lukoil will also pay around 500 million euros in outstanding back payments due to the Exchequer for the period since January 2023. This includes the monthly fee that Lukoil is supposed to remit to the Energy Security Fund, representing the difference between the higher commodity market price of Brent crude and the lower price of the Urals oil originating from Russia that the refinery processes.
Last week, GERB announced that it would move a draft resolution in Parliament, giving the Government one week to withdraw the exemption for the Lukoil Neftochim refinery in Burgas. GERB leader Boyko Borissov criticized the government for doing nothing to address rising fuel prices at a time when the oil price remains unchanged.
In April, the Commission for the Protection of Competition fined Lukoil 100 million euros for abuse of a dominant position, because it did not allow other companies to the fuel warehouses. Until recently, Lukoil Neftochim did not pay taxes in Bulgaria, reporting a loss, but since the beginning of 2021, it has become profitable. Last year, the company paid profit tax for the first time in 15 years.
