Bulgaria Adopts Bill to Ban Export of Petroleum Products to EU Countries

Strategic Insights -

The Bulgarian National Assembly passed a bill on Friday, suspending the export and intra-Community supply of petroleum products, mainly diesel and aviation fuel, to European Union (EU) Member States. The measure aims to ensure Bulgaria's energy security and stabilize the domestic fuel market in light of US sanctions imposed on the Russian company Lukoil. The ban will not apply to the refuelling of domestic or foreign vessels and aircraft, nor to intra-Community supplies to the armed forces of EU and NATO member countries. The bill was supported by several parties, including GERB-UDF, Continue the Change - Democratic Bulgaria (CC-DB), MRF - New Beginning, BSP - United Left, There Is Such A People (TISP), the Alliance of Rights and Freedoms, and two independent MPs.

Key Takeaways:

  • The bill suspends the export and intra-Community supply of petroleum products, mainly diesel and aviation fuel, to EU Member States, with the aim of ensuring Bulgaria's energy security and stabilizing the domestic fuel market.
  • The ban will not apply to the refuelling of domestic or foreign vessels and aircraft, nor to intra-Community supplies to the armed forces of EU and NATO member countries.
  • The measure is motivated by the need to prevent speculation with prices and artificially inflated prices in the fuel market, as well as to prevent the country's fuel reserves from being affected by US sanctions against Russian company Lukoil.
  • Bulgaria consumes mainly diesel, with over 80% of the fuels sold domestically being diesel, while petrol accounts for less than 20%.
  • The bill provides flexibility to the Director of the Customs Agency, allowing them to authorize the export of limited quantities of restricted products for humanitarian or technological reasons.
  • The ban will come into effect on the day of its promulgation in the State Gazette.
  • The Director of the Customs Agency may, however, authorize specific exports or intra-Community supplies of petroleum products listed in the ban in certain cases, provided that they notify the National Assembly of each authorization.
  • Authorization shall take effect within seven days of notification and the National Assembly may, at any time, amend or revoke authorization issued to protect state and public security.
  • The head of the State Agency for State Reserves and Wartime Stocks is instructed to inspect the quantities stored under the Crude Oil and Petroleum Products Stocks Act within one week.
  • The opposition accused the incumbents of causing panic by tabling the bill on Friday afternoon, while the ruling party reassured that the state reserve has sufficient stocks and emphasized that the measure is preventive and in the interest of national security.

Statistics:

  • 80% of fuels sold domestically in Bulgaria are diesel.
  • Less than 20% of fuels sold domestically in Bulgaria are petrol.
  • 40-50% and 50-60% of the automotive fuel market in Bulgaria is held by Lukoil Bulgaria.
  • 89.97% of Lukoil Bulgaria is owned by Lukoil through its Swiss-registered subsidiary Litasco.
  • 50% of Bulgaria's fuel reserves are abroad.

Sources:

  • "Bulgaria adopts bill to ban export of petroleum products to EU countries"

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  • National Assembly of the Republic of Bulgaria, Sitting No. [Not specified]

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