"Lukoil" is trying to formally transfer its assets for temporary use to a company that made all its money by reselling state-owned oil in Russia and is extremely close to the Kremlin. Gunvor Group formally no longer has any relations with Moscow and the sanctioned oligarch Gennady Timchenko, but when you are the fourth largest oil trader, it is hard to believe that there are no dependencies. He said this on the air of “Your Day“ energy expert from the Center for the Study of Democracy Martin Vladimirov.
We recall that on October 30, it was reported that the company that manages the international assets of “Lukoil“ had received an offer from the Swiss-Dutch energy trader Gunvor Group for its acquisition and had accepted it. The sale of assets of the Russian company in Bulgaria will take place only after a decision of the Council of Ministers and a positive opinion of the State Agency "National Security", the parliament decided on October 24. This happened after the deputies adopted an amendment to the Investment Promotion Act on second reading.
According to Martin Vladimirov, when changing the ownership of a company operating in Bulgaria, outside the country, the authorities must request information about the ultimate beneficiary of the new owner. “This is a smart move by “Lukoil“, because the US authorities do not have strong arguments to prevent the deal, unless they require evidence of a real transfer of economic control. It should be checked whether there is a buyback clause if the sanctions are lifted at some point. Gunvor Group has a Swedish owner and is registered in Cyprus, the government is unlikely to oppose the deal. The state should take over the management of the refinery in Burgas“, commented Vladimirov.
Economist and financial analyst Preslav Raykov, in turn, noted that the oil market is politically bound. Gunvor Group is a major global player in the oil markets, operates many large-scale projects, including gas and metals. I do not think there is any surprise with this deal. This is a temporary solution for “Lukoil“ assets. We should separate the situation with the refinery in our country and the international one. The claim that the government may object is ridiculous. "I think the Office of Foreign Assets Control (OFAC) will clear the deal," said Raykov.
For his part, the chairman of the Association of Bulgarian Fuel Traders, Producers, Importers and Transporters, Dimitar Hadzhidimitrov, described the news of the sale of "Lukoil" as reassuring. "If the deal happens, things will continue as before, including the operation of the refinery. We will not have a problem with shortages and high prices. Most likely, a derogation will be requested for at least six months. Our refinery is currently full of diesel," he believes.