Bulgaria Sets Up Crisis HQs over Lukoil Revoked Licence

Energy | July 29, 2011, Friday // 17:06|  views

Valentin Zlatev, General Director of Lukoil Bulgaria, has vehemently denied allegations of being "the country's back seat ruler". Photo by Sofia Photo Agency

Crisis headquarters will monitor the situation on Bulgaria's fuel market after the local refinery of Russian oil giant Lukoil was forced to halt operations for at least a month and a half, the prime minister announced.

Bulgaria's Economy and Energy Minister Traicho Traikov will head the headquarters, Boyko Borisov told journalists.

It will also include Transport Minister Ivaylo Moskovski, head of customs offices Vanyo Tanov, a deputy interior minister, a deputy finance minister and head of the State Reserve.

The officials will supervise the fluctuations on the fuel market following the revocation of the refinery licence to sell fuels.

"I hope that the refinery, being the largest Bulgarian company, will not dare mess around with the state. I would strongly advise them against doing so. I am advising them as their friend," said Boyko Borisov.

Borisov said he would agree to have a meeting with the trade unions operating in Lukoil Neftochim if they first stage a rally against the company's management, who have failed to fulfil their obligations for more than a year and a half.

"This is the law and we are sticking to it," stressed Borisov.

Bulgaria's Neftochim, the only oil refinery in the country, controlled by Russia's giant Lukoil, started on Wednesday to reduce crude processing to effectively stop production after the customs office revoked its licences.

Currently, the Customs Agency is conducting a full inventory of the company, which is the largest fuel importer in Bulgaria, by checking the available fuel in the storage in order to assess the amount of the excise owed by Lukoil.

Authorities have informed that upon full payment, the company would again be allowed to sell fuels, but until then it could trade only the quantities that are outside the refinery.

Vanyo Tanov, head of the customs office, has explained that the refinery cannot operate without the required electronic measuring devices Lukoil failed to install in its storage facilities, and can deal only with the fuels already outside the plant.

He said the only other possibility for the company is to appeal his decision in Court, which would be a lengthy process.

Valentin Zlatev, General Director of Lukoil Bulgaria, has often been described as "the country's back seat ruler" and "the oil oligarch, who pulls the strings of the government".

He is suspected of being the man behind Bulgaria's Prime Minister Boyko Borisov.

Zlatev has strongly denied the allegations.

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Tags: Bulgaria, Neftochim, Simeon Djankov, refinery, oil, Boiko Borisov, Valentin Zlatev, Lukoil, Customs Agency, Vanyo Tanov, rule, license, excise storage, Luk

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