site.btaDeputy PM Aleksiev: "Petroleum Products Export Not Banned by EU, Excess Profits Will Be Taxed"

Bulgarian Caretaker Deputy Prime Minister for Economic Policies and Transport and Communications Minister Hristo Aleksiev was approached by the media here on Tuesday about a current controversy over a decision that would allow the Russian-interests-controlled Lukoil Neftochim refinery of Burgas (on the Black Sea) to export petroleum products (petrol, fuel oil and gas oil) it makes in Bulgaria from crude oil imported from Russia.

Earlier this year, Bulgaria became the only non-landlocked Member State to be exempted from the EU's sanctions against Russian oil import by sea because of the country's geographical location.

Aleksiev recalled that the Council of Ministers decision in question has been drafted and is up for public consultation.

The Deputy PM was adamant that while Bulgaria is forbidden from exporting or re-exporting any crude oil whatsoever, the export of petroleum products is not prohibited and there is no reason why the Bulgarian refinery should be limited to selling its output on the domestic market. In his words, such export will help maintain Bulgaria's foreign-trade balance and export orientation.

"At this point Bulgaria's fuels are the cheapest in Europe, and this is a major success. We will continue to work on this," Aleksiev said, insisting that the cabinet's policy targets ensuring better prices for customers.

He argued that if it processes fuels on a larger scale, Lukoil Neftochim can afford to offer customers lower prices.

Aleksiev said that the caretaker cabinet will shortly submit to Parliament a bill regulating the taxation of the excessive profits of petroleum-product producers, processors and traders.

"Our estimates show that this tax can generate between BGN 800 million and BGN 1 billion in budget revenues annually. Some BGN 100 million are expected from this source this year," he added.