BULGARIA: As court hearing on the LUKOIL Bulgarian refinery against a customs office ruling to strip it of key operational licenses continues, Lukoil CEO Vagit Alekperov says the refinery will fully meet tax rules next year

Record ID: 344318

  • Title: BULGARIA: As court hearing on the LUKOIL Bulgarian refinery against a customs office ruling to strip it of key operational licenses continues, Lukoil CEO Vagit Alekperov says the refinery will fully meet tax rules next year
  • Date: 29th September 2011
  • Summary: SOFIA, BULGARIA (SEPTEMBER 27, 2011) (REUTERS) EXTERIOR OF LUKOIL OFFICE BUILDING SIGN "LUKOIL" NEWS CONFERENCE OF VAGIT ALEKPEROV, LUKOIL CEO, IN PROGRESS JOURNALISTS (SOUNDBITE) (Russian) LUKOIL CEO, VAGIT ALEKPEROV, SAYING "We think that the agreements with the Bulgarian government which have been reached today allow us to evaluate the situation within two-three months, fulfill all the demands of the Bulgarian Customs Committee and after this we will have another meeting where we will sum up the results of our activity and our investment projects here." JOURNALIST AND VALENTIN ZLATEV, CEO OF "LUKOIL NEFTOCHIM BULGARIA" ZLATEV (SOUNDBITE) (Russian) LUKOIL CEO, VAGIT ALEKPEROV, SAYING "We do not have a conflict with the Bulgarian government, there is a misunderstanding with certain institutions of the Bulgarian government in the technological issues, in the timings, how much time is needed to install equipment, how long it takes to prepare documents, to order equipment. these are technological issues, it is not a conflict, but a misunderstanding. If we complete a modernisation of the Bulgarian plant, the volume at Burgas plant will increase by 60 percent, from 5 million today to 8 million." JOURNALISTS (SOUNDBITE) (Russian) LUKOIL CEO, VAGIT ALEKPEROV, SAYING: "We welcome the news that President Putin has made a decision...Prime Minister Putin has made a decision to run for president. Because our country needs stability today, those giant projects on innovation, modernisation which have been launched must be carried through and we hope that Dmitry Medvedev as a prime minister will continue the realisation of these projects which are extremely important for our country." CAMERAMEN (SOUNDBITE) (Russian) LUKOIL CEO, VAGIT ALEKPEROV, SAYING: "The decision by Mr.Kudrin to submit his resignation was an unexpected one for me, because he is a good, qualified specialist who has done a lot for the country." SOFIA, BULGARIA (SEPTEMBER 28, 2011) (REUTERS) EXTERIOR OF SOFIA ADMINISTRATIVE COURT ENTRANCE OF SOFIA ADMINISTRATIVE COURT SIGN "SOFIA ADMINISTRATIVE COURT" COURT STAFF IN CORRIDOR PUSHING CART WITH DOCUMENTS VARIOUS OF LUKOIL LAWYERS AND STATE CUSTOMS COMMITTEE REPRESENTATIVES PREPARING FOR COURT HEARING
  • Embargoed: 14th October 2011 13:00
  • Keywords:
  • Location: Bulgaria, Bulgaria
  • Country: Bulgaria
  • Topics: Politics
  • Reuters ID: LVACR2HFS7FNISKSEXKG24CIV7V9
  • Story Text: Russia's LUKOIL has sped up installing proper meters and will have its 142,000 barrels per day Bulgarian refinery in line with tax regulations next year, CEO Vagit Alekperov said in Sofia on Tuesday (September 27) after meeting Prime Minister Boiko Borisov as well as tax and customs officials.
    The plant at the Black Sea port of Burgas is appealing a customs office's decision to strip it of key operational licences for its failure to install on time product metering needed to enable officials to monitor production and calculate owed taxes precisely.
    "We think that the agreements with the Bulgarian government which have been reached today allow us to evaluate the situation within two-three months, fulfill all the demands of the Bulgarian Customs Committee and after this we will have another meeting where we will sum up the results of our activity and our investment projects here," said Alekperov.
    A court hearing of the the appeal on Wednesday, September 28, has been postponed, but the court has allowed the refiner to process crude oil and sell its fuels until it rules on the tax dispute.
    Alekperov pointed out the complexity of the installation of the specific metering at the plant and said the given time was not enough to comply, but said LUKOIL was not in conflict with the Bulgarian government.
    The dispute has not averted LUKOIL's plans to modernise the Bulgarian plant and Alekperov said a new, 1.3 billion USD hydro-cracking installation there will boost crude processing by about 60 percent to 8 million tonnes a year once it is completed.
    "We do not have a conflict with the Bulgarian government, there is a misunderstanding with certain institutions of the Bulgarian government in the technological issues, in the timings, how much time is needed to install equipment, how long it takes to prepare documents, to order equipment. these are technological issues, it is not a conflict, but a misunderstanding. I f we complete modernisation of the Bulgarian plant, the volume at Burgas plant will increase by 60 percent, from 5 million today to 8 million (tonnes)," Alekperov told reporters at Lukoil headquarters in Sofia.
    Analysts have said that the tax dispute, which started just two months ahead of local and presidential polls illustrates Sofia's increasing push for a stronger role in its relations with Russia on the energy front.
    Alekperov has also welcomed the news that Russia's powerful Prime Minister Vladimir Putin will run for president next March in an election that could open the way for him to stay in power for 12 more years.
    "We welcome the news that President Putin has made a decision...Prime Minister Putin has made a decision to run for president. Because our country needs stability today, those giant projects on innovation, modernisation which had been launched must be carried through and we hope that Dmitry Medvedev as a prime minister will continue the realisation of these projects which are extremely important for our country," said Lukoil CEO.
    Alekperov also said he regrets the resignation of Russia's Finance Minister Alexei Kudrin.
    "The decision by Mr.Kudrin to submit his resignation was an unexpected one for me, because he is a good, qualified specialist which has done a lot for the country," said Alekperov.
    Russian President Dmitry Medvedev accepted Finance Minister Alexei Kudrin's resignation on Monday (September 26) after the veteran finance minister and deputy prime minister refused to work in a government that Medvedev is expected to lead.
    Kudrin's sudden departure after 11 years as finance minister could hardly come at a worse time as Russia contends with capital flight, turmoil on financial markets and growing oil-price risks.
    Kudrin brought Russia back from the trauma of default and devaluation in 1998, running a string of budget surpluses and building an oil-funded war chest of 200 billion USD (129 billion pounds) that helped stave off the shock of the 2008 financial crisis.
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