Financial and business news from Bulgaria

“Lukoil-Bulgaria”: We did not cut anyone and pay full salaries

Lukoil-Bulgaria fully supports the measures of the Government of the Republic of Bulgaria to protect public health and overcome the economic crisis. The company acts in coordination with state and local authorities, provides assistance to overcome the epidemic, maintains its working regime and stores its jobs. This is stated in the official position of “Lukoil-Bulgaria” in connection with the forthcoming vote on a Bill amending the Health Act, the press center of the company reported.
See what else it says:

"On 05.05.2020. The Council of Ministers submitted to the National Assembly a bill amending the Health Act to adapt it to the consequences of the repeal of the state of emergency. While welcoming the project in general, the company expresses concern with some texts in its transitional and final provisions providing for amendments to the Excise Duties and Tax Warehouses Act, which we believe are unmotivated, worsening the conditions for doing business in the country and unrelated to the protection of life and health of the population.

In particular, we are talking about the proposal for the creation of separate tax warehouses from infrastructure sites of the company - the oil pipeline and its adjacent oil bases, pumping facilities, etc., each of which should be provided with the relevant meters, software and hardware only for a month. Apart from the huge and lacking practical costs and additional administrative burdens, the purely technical possibility of carrying out the activities necessary for this purpose for a month, which means that we will have to stop work on the expiry of this period.

It should be noted that in the context of an unprecedented crisis in the global oil market, as well as a drastic contraction of fuel consumption in the country, our company did not lay off any of its thousands of employees during the emergency situation and continued to fully implement the financial their commitments to staff. For the period from 1999 to 2019, the tax proceeds from our activities in the Republican budget exceed $8 billion. The company does not have any violations of customs, excise or tax legislation. Moreover, on 05.05.2020 a full inspection by the authorities of the Customs Agency concluded on all bases with findings of no violations.

Separately, in the fight against the coronavirus companies from the Lukoil Group in Bulgaria provided 140 000 BGN to the Municipality of Burgas to provide tests, protective equipment and protective clothing and provided free fuel to a number of hospitals, volunteers and doctors in the country as a sign of support.

We appeal to the Government of the Republic of Bulgaria and the honourable Members of Parliament with a call to exclude the texts creating unjustified obstacles to doing business from the final version of the Health Act”.