FACTS posts opinions with a wide range of viewpoints to encourage constructive debate.
The question of why “Lukoil” does not pay taxes in Bulgaria is not unusual. Every company of the scale of “Lukoil” has the right to do the so-called tax optimization. All governments around the world are trying to force transnational corporations to pay as much tax as possible. But corporations are powerful, and the globalist doctrine minimizes the ability of national power to have an impact on supranational business networks. In essence, globalization is a doctrine of superwealth.
But let’s note the facts from the point of view of the company “Lukoil-Neftochem” itself. We must admit that there were also some bad periods for oil processing, and then in Europe 25 refineries went bankrupt and closed. By 2015, for example, in front of “Lukoil-Neftochem” there is also the question of whether to invest or close the refinery and focus only on trading. However, the company decided to invest $3.5 billion in equipment that currently gives it a technological advantage. Including equipment for processing the heavy waste that was previously thrown away, for example the so-called tar. Processing depth – this is how much percent of the oil is converted into some kind of commercial product. Before the depth was around 78%, it is currently between 92% and 97% depending on the oil being processed. There is an index that is like the stars of restaurants, called the Solomon Energy Intensity Index, which is an indicator of the energy efficiency of a refinery. The average European index is 10.4, and when “Lukoil” bought the refinery in Burgas, its index was around 6.5-7. Currently, Lukoil-Neftohim’s performance index is 14.5. Which puts the company in the top 3 of the best in Europe.
But why am I telling you this? Because lately the pressure on Lukoil-Neftohim is particularly strong. It goes along two lines, which perfectly merge behind the backdrop of European sanctions against Russian oil. One is the use of Lukoil-Neftohim to deliver fierce political blows against Asen Vasilev and PP. PP must dishearteningly admit that in this respect GERB and DPS surpass them in the traps they set for them daily. The second line, however, is more serious. Recently, the Litasco company, a 100% subsidiary of Lukoil, was forced to sell ISAB, the third largest refinery in Europe, which is located in Sicily, to a Cypriot capital investment fund GOI Energy with manager Michael Bobrov, who previously led some activities in Israel of the giant Trafigura. Interestingly, the management company of Bobrov’s fund received a license from the Cypriot authorities to operate in the field of energy infrastructure only in July last year. So the second line of pressure, parallel to the political blows against PP, is the desire of a certain business group to acquire “Lukoil-Neftohim”, forcing “Lukoil” to sell. Just like what happened in Italy.
It is interesting that alongside the war in Ukraine there is actually a boom in the demand for oil products and in 2022-2023 all refineries in Europe are making a big profit. Because of these excess profits, the EU has imposed a temporary solidarity levy on all energy companies and currently Lukoil-Neftochem pays a 50% solidarity levy plus 10% standard profit tax. But back to the fact that the Lukoil-Neftochem refinery is extremely attractive for acquisition, and the most active players against Lukoil-Neftokhim are not looking for some imaginary economic justice at all. And they realize the forced change of energy transport corridors to Europe and insist on taking advantage of the formal hysteria against Russian oil by trying to acquire the refinery. They use the classic trick that is used in such cases – systematic harassment by the state, media vilification and constant obstruction of the normal activity of the company.
We have already seen this with other foreign business owners here who are literally being driven out by our internal predators. In the meantime, let us not forget that economic power creates quite direct political power. And the concentration of economic power in Bulgaria is about to create some kind of absolutism, which is too complicated to explain to the dear voter, because it is well hidden behind the facade of thousands of companies, however, driven by the same center.
More than half of Lukoil’s shareholders are foreign individuals and legal entities, they are not Russian. And the majority of these individuals and legal entities are from the USA. The company is not directly included in the sanctions. Only the top management is included, but neither “Lukoil”-Bulgaria, neither “Litasco”, nor “Lukoil”-Benelux, nor “Lukoil”-US are included in the sanctions. “Lukoil” has over 250 gas stations in the USA. Also, “Lukoil” and the French “Total” have a joint refinery in the Netherlands. I emphasize these facts so that anti-Russian hysteria is not abused. And on this basis to justify the expulsion of the company so that a certain company can get hold of this golden asset.
The experience of all of us from the last 30 years shows that the Bulgarian business does not manage its assets according to the principle of meritocracy in order to develop a truly market environment with benefits for the social fabric of the country. Bulgarian business does not really like to develop business. Just the opposite. Bulgarian business for the most part is competent only in extraction and robbery. The destruction of the market environment, the use of institutions as a club to seize businesses produces remarkable forms of political and economic decline in our dear homeland. We have already concluded a contract with Turkey, with which we want to receive Russian gas through the Turkish system. Regarding the refinery in Burgas, we are following the path of Italy, where before the refinery was sold, the state had taken over management.
If a state manager is introduced in Lukoil-Neftohim, as some parties insist so much, it is very possible that the refinery infrastructure will be used only for storage and transshipment of oil products. And where will these oil products come from? The answer is: from Turkey. Who is the biggest importer of oil in Turkey?! Russia, of course. That is, our political power will very soon make Bulgaria completely dependent on the supply of gas, gasoline and diesel, and after the closure of the coal plants and electricity from Turkey. And he will do so with the clear awareness that he is participating somewhere along the chain of personal and private economic benefits. So basically this is the Lukoil case. The rest is cotton candy and fun Russophobia to distract from the real goals.
* This is the personal opinion of the author and does not reflect the position of the BNR
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4.4
Rating 4.4 out of 30 votes.
2023-11-18 16:02:00
#Kalina #Androlova #attack #Lukoil #aims #force #sale
