Bulgaria Faces Monthly Losses of 50 Million Euros Due to Lukoil Export Ban, Says Ex-Energy Minister

Former Energy Minister Alexander Nikolov has warned that Bulgaria could face substantial economic losses due to the recent parliamentary decision to ban Lukoil from exporting diesel and aviation fuel. Speaking on bTV, Nikolov emphasized the central role of the Burgas refinery, noting that it is, directly or indirectly, the largest taxpayer in the country and a critical contributor to the functioning of the state budget.

Nikolov estimated that a potential halt in the refinery’s operations could cost the state up to 1 billion euros. He explained that over 3,000 Bulgarian companies are involved in the supply chain surrounding the refinery, contributing taxes and other economic activity that sustains its operations.

The former minister outlined the scale of the impact, dividing it between the domestic and international markets. The Bulgarian market was valued at around 5 billion leva last year, while foreign markets contributed approximately 4 billion leva. Of the international revenue, 1.2 to 1.5 billion leva would typically return to the state budget, depending on product prices and purchases.

“This means that with the export ban in place, the state budget could lose at least 100 million leva (50 million euros) each month,” Nikolov said, stressing the severity of the financial consequences stemming from the restrictions on Lukoil’s exports.