The Constitutional Court of Bulgaria will check the legality of breaking the LUKOIL concession
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The Constitutional Court of Bulgaria accepted for consideration on the merits a request to declare illegal the decision of parliament and the government to terminate the concession of LUKOIL Neftochim Burgas (MOEX: LKOH) to the Rosenets oil terminal. Bulgarian President Rumen Radev filed a corresponding petition with the court on August 4. He noted that the agreement with LUKOIL was terminated contrary to the interests of citizens and the risks of rising fuel prices.
From the court ruling, which is quoted by the Bulgarian National Radio (BNR), it follows that the president’s request was partially accepted for consideration. The relevant institutions listed in the resolution are the Bulgarian People’s Assembly (Parliament), the Council of Ministers, the Ministers of Economy, Transport, Justice, Finance and Energy, as well as the State National Security Agency.
LUKOIL Neftohim Burgas is the largest refinery in South-Eastern Europe, accounting for about 9% of Bulgaria’s GDP.
In May 2011, LUKOIL Neftohim Burgas entered into a concession agreement for the Bulgarian port terminal Rosenets. The concession was granted for 35 years. In August 2023, the Bulgarian Parliament decided terminate concession due to sanctions imposed on Russia due to the military operation in Ukraine. 4 September Ministry of Transport and Communications of Bulgaria announced on the completion of the procedure for transferring the Rosenets terminal under state control. The Bulgarian authorities do not plan to pay compensation to LUKOIL due to the termination of the concession.
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