site.btaUPDATED European Commission: Bulgaria Exempted from EU's Russian Oil Embargo for Supply, Not for Resale

Earlier this year, Bulgaria was exempted from the European Union's sanctions against Russian oil import by sea because of the country's geographical location, a spokesperson of the European Commission said, replying to a question at a news conference here Monday. The exemption, valid until the end of 2024, aims to allow Bulgaria to supply itself with oil, and not resell it to other EU Member States or third countries, he specified.

He noted that the matter is explained in the guidelines for the sanctions' application, available on the European Commission's website.

Finance Ministry Reacts

"In our opinion, speculation on this subject whips up unnecessary tension in society, and we believe that various spokespersons should responsibly present the information in full and interpret it correctly," the Bulgarian Finance Ministry said in a press release on Monday.

The Ministry reacted to interpretations according to which the European Commission said that despite the EU's embargo on Russian oil, the Bulgarian Government allows Lukoil Neftochim to export petroleum products made in Bulgaria from crude oil imported from Russia.

"Bulgaria does not intend to re-export crude oil and to violate the restriction. Refined petroleum products produced in a third country on the basis of Russian crude oil and exported to another Member State or a third country could not possible be subject to the sanctions because they are manufactured outside Russia," the Ministry specified.

"It is important to note that restricting exports and intra-community supplies of petroleum products made from crude oil and petroleum products originating or exported from Russia will lead to a substantial decrease in the production capacity and will curb the operation of the companies operating in the Bulgarian market. Such a measure would directly impact our country's export potential, worsening the trade balance and eroding the proceeds from intra-community supplies and exports, with all ensuing negative consequences for the budget. Ensuring unimpeded export is fundamental to national economic development," the press release says.