Lukoil Burgas Cuts 8 Million in Costs After Dropping Swiss Intermediary

Lukoil’s Burgas refinery has reported significant cost savings following the removal of its Switzerland-based intermediary, Litasco. Speaking to the parliamentary Committee on Economic Policy and Innovation, Rumen Spetsov, Lukoil’s Special Commercial Administrator, confirmed that the refinery now operates fully on market principles, with 86% of its production capacity currently in use.

Spetsov emphasized that halting Russian oil imports has not led to higher fuel prices from the Burgas plant. He explained that the elimination of the intermediary has improved the company’s ability to negotiate both crude oil purchases and fuel sales. “In the two months since Litasco was removed, the refinery has saved eight million dollars,” Spetsov stated.

In addition, Spetsov highlighted that all refinery operations are under close scrutiny by the United States, with every transaction being carefully monitored. He dismissed concerns that Russian oil might be entering the facility in violation of sanctions, reaffirming that Lukoil’s Burgas operations fully comply with international regulations.

The move marks a notable shift in the refinery’s commercial approach, streamlining its operations and reinforcing transparency in the post-sanctions environment, while maintaining stable fuel pricing for the Bulgarian market.