The Scandal of Oil Scams in the Bulgarian Farming Industry

Farmers Warned About Massive Oil Scams in Bulgaria

In a shocking revelation, farmers in Bulgaria have been informed about a major scam involving the pricing of oil. It has been discovered that the oil being promoted at a discounted price of BGN 2.70 per bottle is actually much more expensive than it should be. According to calculations made by Borislav Petkov, a farmer and lawyer, the cost of producing a liter of oil at the factory is only BGN 1.30. This means that the current promotional price is significantly higher than it should be.

Despite the campaign discounts, the prices of oil remain high, with labels showing prices ranging from BGN 3 to BGN 7 per liter. Additionally, counterfeit oil can be found on the market for as much as BGN 10 per liter.

The cost of producing oil has been further analyzed by Petkov, who revealed that black seed is currently being purchased from Ukraine at BGN 500 per ton. With a yield of 40%, one ton of sunflower produces approximately 400 liters of oil. This means that the cost of producing a liter of oil comes out to around BGN 1.30. It is important to note that this calculation does not take into account the profit from sunflower meal.

The situation becomes even more alarming when considering the source of the oil. Due to a ban imposed by Bulgaria and five other countries on certain products from Ukraine, imports from Ukraine have not completely stopped. Refined oil from Ukraine is being directly brought in and then repackaged by factories in Bulgaria. This not only reduces production costs but also raises concerns about the safety of the oil. Essentially, the Bulgarian oil on the shelves is actually Ukrainian.

The supply schemes involved in this fraudulent activity are complex and international in nature. Mihail Mihailov, a farmer from the Silistra area, revealed one such scheme. He mentioned that the road from Silistra to Varna, specifically in the village of Riltsi, has been filled with Ukrainian trucks since last year. Although the trucks are now labeled as Romanian due to the ban, it is clear that they are part of an international scheme operating on the edge of the law. The oil allegedly transits through Romania, where it is transferred from Ukrainian tires to Romanian ones before entering Bulgaria under the guise of an EU delivery.

Farmers have also shared shocking stories about the profits made by traders involved in this scam. One trader boasted about making €15 million in profit from trading grain and sunflowers with Ukraine since the Russian invasion. This trader purchased black seed from Ukraine at a time when the price of oil in Bulgaria reached BGN 7 per liter.

Apart from the financial implications, there are also concerns about the quality of the imported grain. Borislav Petkov highlighted that grain raw materials from Ukraine are not only cheaper but also treated with preparations that are not allowed in the EU. Romanian farmers have even declared that they will no longer buy Ukrainian corn after their calves refused to eat it.

The consequences of this fraudulent activity are dire for Bulgarian farmers. Mihail Mihailov and Borislav Petkov have warned of imminent bankruptcies. Due to duty-free imports, Bulgarian silos are already full a week before harvest, and Ukraine is taking over the European markets. The cost of seeds, fertilizers, and preparations has doubled, while rents have skyrocketed. In comparison, Ukrainian farmers do not have to pay rent and have access to vast amounts of free land.

The situation is critical, and urgent action is needed to protect Bulgarian farmers from these scams. The government must take immediate steps to investigate and crack down on the fraudulent activities, ensuring fair prices and a level playing field for all farmers. Failure to do so could result in mass bankruptcies and the collapse of the agricultural sector in Bulgaria.

What is the current promotional price of oil in Bulgaria and how does it compare to the actual production cost?

In a recent revelation, farmers in Bulgaria have been warned about a significant scam regarding the pricing of oil. It has come to light that the oil being advertised at a discounted rate of BGN 2.70 per bottle is actually much more expensive than it should be. A farmer and lawyer named Borislav Petkov has conducted calculations and found that the production cost of a liter of oil at the factory is only BGN 1.30. This means that the current promotional price is significantly higher than it should be.

Despite the campaign discounts, the prices of oil in Bulgaria remain high, with labels indicating prices ranging from BGN 3 to BGN 7 per liter. Furthermore, counterfeit oil can be found on the market for as much as BGN 10 per liter.

Petkov has further analyzed the cost of producing oil and discovered that black seed is being imported from Ukraine at BGN 500 per ton. With a yield of 40%, one ton of sunflower produces approximately 400 liters of oil. This means that the cost of producing a liter of oil is around BGN 1.30, without including the profit from sunflower meal.

The situation becomes even more concerning when considering the source of the oil. Due to certain product bans imposed by Bulgaria and five other countries on Ukraine, imports from Ukraine have not completely ceased. Refined oil from Ukraine is being directly imported and then repackaged by Bulgarian factories. This not only lowers production costs but also raises concerns about the safety of the oil. Essentially, the Bulgarian oil on the market is actually Ukrainian.

The fraudulent activity in this case involves complex and international supply schemes. Mihail Mihailov, a farmer from the Silistra area, has revealed one such scheme. He mentioned that the road from Silistra to Varna, specifically in the village of Riltsi, has been filled with Ukrainian trucks since last year. However, it is important to note that the provided search results did not directly mention this specific fraudulent activity concerning oil scams in Bulgaria.