If the sanctions affect the “Lukoil” refinery, including as a form of ownership, the state must step in and temporarily take over management. This was said by Lyubomir Datsov from the Fiscal Council in the "Interview in NOVA News".
The sanctions on the largest Russian oil companies “Rosneft” and “Lukoil”, imposed today by the American president, directly affect the Burgas oil refinery.
“There is a question of interpretation whether the Bulgarian refinery is included in these sanctions or not. And there is no way that we can react and have an absolute opinion on this issue within the day”, said Datsov.
In his words, this is a question of scope. “The refinery is a Bulgarian company, it is registered here. The ownership is indirect, because even the owner is located in Switzerland. This is a company that is a subsidiary of the subsidiary of the other company, which is in Austria”.
“The case of establishing the ownership and the scope of the sanction itself, which was imposed by the American government, is very complicated. I think we need to give it some time. This is a matter for lawyers who deal with international law”, he explained.
According to Datsov, there are two possibilities that could happen. “If the sanctions affect the refinery, including as a form of ownership, and not because it supplies oil, then the state should step in and temporarily take over management. Otherwise, there is a great risk of stopping this refinery”.
“It is better for the state, with all the conditions that are here, to intervene to guarantee the supply of fuel to the country. Although we certainly have reserves and at least initially this will not be a problem”, he noted.
The expert also commented on the budget for next year.
“People vote based on political programs and commitments that they have made. Political programs are the promises and commitments that politicians must make. None of them, no political party, and this government have a mandate to raise taxes," he commented.
Therefore, according to Datsov, spending should be optimized. “Currently, the budget has exceeded its normal size. It is not a punishment for an overweight person to lose weight in order to be healthy. It is not easy, but he has to do it”.
“If we continue at the same pace and in the same direction, it will get much worse. People should support policies that are towards stability, even if there are some unpopular actions, such as slowing down wage growth. Because it's like the foundations of a house - hardly anyone will care if the tiles or windows are washed if the foundations are cracked and wobbly," he believes.
“I expect the budget to have a maximum of 7% nominal growth for next year compared to what it will finish with at the end of 2025, and that's if it's within 3%. Otherwise, it should be at least a 2 or 3% maximum increase,” Datsov explained.