September 28 (SeeNews) - Bulgarian lawmakers have mandated that Lukoil Neftochim Burgas, the operator of the country's sole refinery, must switch to processing only non-Russian crude starting from October 1, 2024, as part of sanctions against Russia for its actions in Ukraine.
The amendment, adopted on second reading, does not allow for an early lifting of a derogation granted to Bulgaria by the European Commission last year. The amendment was approved with a vote of 119-53 in the 240-seat parliament on Thursday, as shown during a live parliamentary broadcast. The derogation lets Bulgaria keep importing crude oil and petroleum products from Russia by sea until October 1, 2024.
Under the adopted changes to the legislation, Lukoil Neftochim Burgas, which currently processes seaborne Russian Urals crude, will gradually make the transition to non-Russian sources of supply. By December 31, the company must ensure it processes no more than 80% oil of Russian origin. Oil imported from Russia must make up no more than 75% of processed supplies by March 31, 2024, declining to up to 50% by June 30, 2024, and no more than 25% by September 30, 2024. At the same time, fuel production levels must not fall below the average quantity of the past five complete fiscal years.
Earlier this week, Lukoil Neftochim Burgas, part of the European arm of Russia's Lukoil, warned that a parliamentary process to terminate ahead of schedule Bulgaria's exemption from an EU embargo on Russian oil imports may jeopardise the refinery's operations and pose risks to the fuel market in Bulgaria.
Initial proposals, voted on first reading in parliament, aimed to put an end to Russian oil imports within 30 days of entering into force.
The 30-day timeline could lead to a significant rise in fuel prices, with risks of speculation and even fuel shortages, Bulgarian state broadcaster BNT cited Economy Minister Bogdan Bogdanov as saying.
The Neftochim refinery, located near the city of Burgas on the southern Black Sea coast, is the largest such facility in the Balkan Peninsula and a major supplier of fuels to Bulgaria's domestic market.
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