With 119 votes “for“, the deputies adopted on second reading the changes to the Investment Promotion Act related to the sale of “Lukoil“. In early October, the parliament adopted on first reading that the sale of assets of the Russian oil company “Lukoil“ in Bulgaria will take place only after a decision of the Council of Ministers and with a positive opinion from the State Agency “National Security“ (SANS). The changes to the Investment Promotion Act, submitted by deputies from GERB-SDF, “DPS – New Beginning“, “BSP – United Left“ and “There is such a people“ (ITN), were approved with 114 votes „for“, 83 „against“ and two „abstains“.
What happened in October
As we indicated above, the parliament adopted the sale of assets to the Russian oil company „Lukoil“ on first reading. Now the law has passed on second reading.
Since the beginning of October, the parliament has also made it so that the president no longer has the right to appoint the chairman of the State Security Agency. Before that - at the end of May - the National Assembly elected the head of the State Security Agency, Plamen Tonchev, as chairman of the Commission on Files. Thus, the deputies practically paved the way for the election of a new director of the State Security Agency. Tonchev was elected head of the commission, which exposes former State Security agents, with 120 votes „for“ from deputies of GERB, BSP and ITN, supported by Delyan Peevski's “DPS – New Beginning“.
Then Decho Dechev was appointed as the acting chairman of SANS.
The parliament once proposed it, but President Rumen Radev did not sign a decree, as he did not agree with this appointment. The ruling parties from GERB, BSP, “There is such a people“ and “DPS – New Beginning“ overrode the president's veto on the amendments to the SANS law on October 23. Thus, the majority finally eliminated the need for a decree by the head of state to appoint the head of the service and cleared the way for the election of Denyo Denev as chairman of SANS.
October 24 – second reading of the law
With 119 votes „for“ the deputies adopted on second reading the amendments to the Investment Promotion Act related to the sale of „Lukoil“.
The bill provides for SANS to conduct a preliminary study and provide a written opinion before carrying out disposal transactions with company shares and shares in the capital of „Lukoil Bulgaria“ EOOD, „Lukoil Neftochim Burgas“ AD, „Lukoil Aviation Bulgaria“ EOOD and „Sustainable Energy Supply“ OOD, as well as with company rights, shares or shares in other legal entities from their ownership structure.
They must be registered on the territory of Bulgaria or in a third country, owned by „Lukoil“ OAO, Russia, or persons related to it. Also – before carrying out disposal transactions with real estate, as well as with movables and facilities designed for processing, production, storage and sale of oil and petroleum products.
What to expect on the topic of „fuels“
The US Treasury Department said that the two largest oil companies in Russia – „Rosneft“ and „Lukoil“ – have been sanctioned in order to limit Moscow's ability to finance the war against Ukraine. The way out for Bulgaria is to change the ownership of „Lukoil“. The state may put pressure on the owner to speed up the procedure for transferring ownership, because such a procedure has been going on for a long time.
Is there a buyer?
It is claimed that there are two potential buyers for „Lukoil“ – one is related to the Azerbaijani company “Sokar“, and the other – with a Turkish holding.
Turkey!? If Turkey intervenes – let's not be bad prophets, but that's probably where things are going – we have to be very careful, because we are still selling a monopoly.
On September 30, Prime Minister Rosen Zhelyazkov stated that “… the contract with the Turkish state energy company “Botaş“ has already obligated “Bulgargaz“ with over 600 million leva, which the company cannot repay“.
Why shouldn't Turkey demand the refinery in order to give up “Botaş“? We are just thinking out loud, as they say…
If we don't prove that the procedure for transferring ownership of “Lukoil“ is in progress, sanctions are entirely possible. An example would be “Rosneft“ in Germany, where sanctions do not apply because the management of the company and its subsidiaries is under the control of the German government.
In our country, the government has enough leverage to move the procedure forward - the question is how and whether it will manage it.