Hungarian Prime Minister Viktor Orbán has announced that the Hungarian oil and gas company MOL is interested in purchasing Lukoil’s Neftochim refinery in Burgas, Bulgaria. This announcement came a day after Orbán’s visit to Bulgaria, where he met with President Rumen Radev and Boyko Borisov, leader of the GERB-SDS party.
Analysts have raised concerns about the potential involvement of Russian financing in the deal, given MOL’s relatively limited financial resources. Orbán’s involvement in the negotiations has also sparked unease among European authorities, who may seek to block the acquisition if Russian connections are confirmed. Experts warn that Hungarian ownership of Lukoil’s assets could increase Russia’s influence in the Balkans.
Earlier in November, it was reported that a Qatari-British consortium, Oryx Global, had also expressed interest in purchasing the Neftochim refinery, calling it the preferred candidate for Lukoil. However, Lukoil denied any plans to sell the refinery at that time. The Neftochim refinery is considered a strategic asset by Bulgaria, which holds a Class A golden share in the company, giving it a blocking minority interest. This means the Bulgarian government can call a shareholders’ general meeting to discuss major decisions regarding the company. Additionally, the Minister of Economy appoints one member of the refinery’s Supervisory Board.
Under Bulgarian law, any sale or transfer of the majority stake in the Russian-controlled refinery requires approval from the Commission on Protection of Competition and the State Agency for National Security. The state also has the authority to take control of the refinery if it determines that national security is at risk.
