The insurance business of the murdered Alexey Petrov and the connection with the Green Card system

Among the topics, in relation with which the name of murdered Alexey Petrov has been mentioned since late last year and early this year, are the changes to the Insurance Code. For years Bulgaria has been under European monitoring for non-payment of insurance for accidents caused by cars insured abroad under the so-called "green card" system.

After the acquittal of Alexey Petrov in the “Octopus” case in 2018, he has long stayed away from public appearances. His name reappeared on the agenda at the end of the previous parliament in 2022.

"What happened then was that his insurance company, that is, the company he is believed to own, was very active in blocking a law related to European rules," explained Tihomir Bezlov, security expert.

Caretaker Finance Minister at the time, Rositsa Velkova, proposed an amendment to the Insurance Code, which would oblige Bulgarian insurers to pay for damages caused by cars insured in Bulgaria and then make claims. For many years, insurances have not been paid, especially in Italy, for which Bulgaria has been criticised.

In December 2022, the Parliament’s committee on economic policy adopted at first reading amendments to the Insurance Code that tighten the rules for the Bulgarian Green Card Bureau. The controversial point in them was that the bureau should make automatic payment when claims are made for compensations for accidents that occurred abroad. The changes should have been considered before their second voting in committee, but this bill never reached the stage of voting.

"The changes to the law were blocked and then there was talk of the Alexey Petrov coalition," said Tihomir Bezlov.

However, the current finance minister, Assen Vassilev, reintroduced the changes to the Insurance Code and hours before MPs were due to go on holiday at the end of July, they passed it. During the first debate in the chamber, the position of "Vazrazhdane" against the amendments was the strongest.

"Western European insurance companies have unsettled payments with the Bulgarian ones, they have accumulated some 10-20 million in debts and given that Bulgaria has stepped up to enter the eurozone, the Western insurance companies decided that they could use their strong lobby in Europe to protect their interest and take their money," Vazrazhdane” MP Deyan Nikolov said on 21 July 2023.

Surprisingly, without a second reading debate, MPs adopted the changes to the code - with 137 votes in favour, 34 against and seven abstentions. Thus, insurers are now obliged to immediately pay damages caused by cars insured in Bulgaria in the event of an accident abroad.

It remains to be seen how these changes will affect the insurance market in this country, as well as compulsory third-party liability insurance.

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In 2018, Alexey Petrov who was a main defendant in the “Octopus” case against organised crime, was acquitted after eight years of investigation and trial. Together with several other people, he was accused of participating in an organised crime group for racketeering and extortion, as well as for the disclosure of state secrets. The case started in 2010 when Petrov was arrested in his home and was put under house arrest. He then described the arrest as "political repression."

Alexey Petrov was shot dead while walking up Vitosha mountain just outside Sofia on Wednesday, August 16, 2023. The killing took place around noon and, in addition to Mr Petrov, a female accompanying him was wounded and is currently in “Pirogov” emergency hospital, having undergone a surgery.

The killing comes after two failed assassination attempts. On August 15, 2002, he got shot twice, wounded in the chest and the leg, but survived. In October , 2015, Petrov's car was fired at with a grenade launcher. The armour of the his Mercedes saved him. The perpetrator, the Ukranian Roman Logvinenko, was arrested and convicted in 2021 to 10 years of imprisonment, but at the end of May this year, the Court of Appeals surprisingly ordered Logvinenko's parole early, imposing a probationary period equal to the sentence he has left to serve - nearly two and a half years. The court reasoned that the convicted person had given sufficient evidence of his reformation.

In their ruling, the appeal judges overturned the decision of the Sofia City Court, which had rejected Logvinenko's request. According to the prison authorities, at least six more months were needed to monitor the Ukrainian's behaviour.