"Lukoil" transfers its entire economic activity into Bulgaria

"We have reached an agreement with the management of Lukoil to transfer their entire economic activity to Bulgaria as of 1 January 2023, i.e. all production, all revenues and taxes to be paid in Bulgaria and not, as it was the case so far, in the Netherlands or Switzerland," Bulgaria’s caretaker Transport Minister Hristo Alexiev said on November 21. In his words, according to the estimates, it is possible to count on budget revenues to the treasury from Lukoil in the amount of 100 million. These funds will compensate the most vulnerable groups in the country, Hristo Alexiev added.

"The agreement reached today opens the door for more taxes to enter the Bulgarian budget, as well as for the taxation of excess profits," said caretaker Minister of Economy and Industry, Nikola Stoyanov, and stressed that this will lead to a permanent solution to the problems with fuel and its prices.

Chairman of the Board of Lukoil Neftohim Bourgas Ilshat Sharafutdinov said that it is necessary to change the business scheme in Bulgaria. He noted that today's agreement will significantly increase revenues to the Bulgarian budget as well as jobs from 1,300 to 10,000.

"The state is not conceding anything, but is taking advantage of the derogation given for the import of crude oil. What we have agreed means that all intermediaries in the chain will be gone," caretaker Transport Minister, Hristo Alexiev, said.

Caretaker Deputy Prime Minister for Economic Policies and Minister of Transport and Communications Hristo Alexiev, Minister of Economy and Industry Nikola Stoyanov and Deputy Minister of Finance Lyudmila Petkova held a meeting with the management of Lukoil Bulgaria and Lukoil Neftohim Bourgas at the Council of Ministers.

On the part of Lukoil, the talks were attended by Ilshat Sharafutdinov, Chairman of the Board of Lukoil Neftohim Bourgas, Andrey Matiukhov, General Director of Lukoil Bulgaria, and Alexander Velichkov, Legal Advisor of Lukoil Bulgaria.