site.btaBulgaria May Veto EU Embargo on Russian Oil Supplies Unless Given Two-Year Exemption

Bulgaria will most probably impose a veto on a ban on EU imports of Russian crude oil and refined petroleum products, proposed by the European Commission, unless the country is allowed a two-year exemption from the embargo, it transpired from a bTV interview with National Assembly Energy Committee Chair Radoslav Ribarski on Saturday.

"At this point we are adamant that we will fight to the last. If the worst comes to the worst, we will most probably impose a veto," the MP said.

He specified that Bulgaria is seeking a two-year deferral for implementing the ban and expects a reply from the European Commission until the end of next week.

Reuters reported on May 6 that the European Commission had tweaked its embargo plan, deciding to give Hungary, Slovakia and the Czech Republic more time to adapt to the sanctions and shift their energy supplies, but Bulgaria, which had also asked for exemptions, was not offered concessions on deadlines "because they don't have a real point," one official said. The other three countries that were granted more leeway "have an objective problem," the official added.

"The talks continue. The Bulgarian Government has decided to do everything possible," Ribarski said in his intereview. He argued that Bulgaria faces the same problem as Hungary and Slovakia because the oil refinery in Burgas is technologically designed to process Russian oil.

On May 4, Krassimir Parvanov, who represents the Bulgarian State on the Supervisory Board in majority-Russian-owned Lukoil Neftochim, told www.mediapool.bg that the Burgas-based oil refinery will have to suspend operations if the EU bans the import of Russian oil and petroleum products.

The refinery relies on Russian Urals oil for 50 to 60% of its inputs, and the rest come from Saudi Arabia, Kuwait and other sources. Parvanov is adamant that Lukoil Neftochim is technologically unable to function without Russian oil, but it can keep working if the embargo is partial and Russian deliveries drop to even 10% of the total.

For his part, Deputy PM and Finance Minister Assen Vassilev argues that the refinery can operate on 100% non-Russian oil, but because of the irregularity of input deliveries they will have to use part of their reserves. Vassilev said in a 24 Chasa interview on May 5 that Lukoil Neftochim is processing 18,000-20,000 tonnes of crude daily, of which 50% is Russian and 50% is non-Russian already. Bulgaria's daily demand approximates 10,000 tonnes.

Former deputy economy minister Nikola Yankov, who represented Bulgaria on the Lukoil Neftochim Supervisory Board some 20 years ago, insisted in a Facebook post that "Bulgaria does not need and does not depend on Russian oil". He argued that even if the refinery entirely suspends its operations (as has often been the case for months in order to carry out overhauls or install new plant), there will be no shortage of fuel as many of the large retail chains even now import their merchandise from Austria, Greece and Romania. According to Yankov, petroleum products can also arrive by tanker in Varna on the Black Sea and by barge in Vidin, Svishtov and Rousse on the Danube, or can be transported by train to Bulgaria from the terminal in Thessaloniki and from Romania.