The Bulgarian Parliament overturns the presidential veto regarding Lukoil refinery Takeover

The Bulgarian Parliament overruled the veto of the president on Thursday on legislation that would allow the government to sell Lukoil’s oil refinery to protect the asset from impending U.S. sanctions.

Last month, the U.S. Treasury Office of Foreign Assets Control, along with Britain, imposed sanctions on Lukoil, and Rosneft - Russia's largest oil companies - to increase pressure on Russian president Vladimir Putin and threaten their operations in Europe.

Last week, lawmakers approved changes that would give a commercial manager appointed by the government the power to supervise the continued operation and sale of Lukoil Bulgaria's refinery beyond November 21 when U.S. Sanctions are set to go into effect. Rumen Radev, the president of Bulgaria, vetoed a bill Wednesday because it did not provide adequate safeguards to prevent future claims against the government.

The Bulgarian news agency BTA reported that the Bulgarian Parliament rejected his objections on Thursday by 128 votes against 59.

The U.S. sanction has raised concerns over winter fuel supply in Bulgaria where Lukoil operates the Burgas Refinery, hundreds petrol stations, and fuel storage facilities. Three sources familiar with this matter reported on Wednesday that Lukoil had asked Washington for an extension to the deadline which prevents transactions with Russian companies after November 21. The company wanted more time to review offers and wind down its commitments, they said.

Boyko Borissov was confident that Bulgaria could secure an extension by next week, despite the decision made on Thursday. Borissov is the former Bulgarian prime minister and the leader of GERB, the party that leads the coalition government.

BTA quoted Borissov saying, "We are working together with the government to ensure that the refinery works well for both the workers and the refinery." (Reporting and writing by Stoyan Neno; Editing by Elaine Hardcastle).

(source: Reuters)