Bulgaria to Unblock Aircraft Fuel Reserve over Lukoil Crisis

The state can provide Bulgaria's airports with fuel for nearly 70 days after they run out of thier stocks. Photo by Sofia Photo Agency

Bulgaria's government is about to tap into the state reserve of aircraft fuel to prevent shortages after revoking the licence of Russian oil giant Lukoil local refinery, the only in the country.

"The move has to be taken because the country's airports will run out of stocks in a few days," Economy and Energy Minister Traicho Traikov told journalists on Friday afternoon.

A governmental decision to this effect was expected to be taken by the end of the day on Friday, sending additional fuel to the airports across the country in a few days.

The minister denied claims that the unblocking will require a permit by the European Commission, saying there are other legal ways to do so. He however declined to deliberate on them.

Interestingly the minister confirmed troubling reports that the aviation fuel from the state reserve is actually stored in Lukoil warehouses, fuelling suspicions that the state and the company are closely intertwined.

"We have certain quantities of reserve fuel on paper, I hope to see all of it there," he said.

Earlier in the day the prime minister said 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.

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.

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.

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.

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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