Page 14 - EurOil Week 19 2022

EurOil NEWS IN BRIEF EurOil

Turkish oil imports up 31% while not to impose the ban as they have no not under EU sanctions — has changed the
So far, Hungary and Slovakia are allowed
ownership structure of NIS, and enabled the
LPG imports up 5% in Feb alternative source of supplies. normal functioning of Serbia’s oil market to
Bulgaria has already found different
contnue.
Turkey imported 3.2mn tonnes of oil in sources of supplies of natural gas, after Russia’s The President of Serbia Aleksandar Vucic
February, marking a 31% y/y gain, state-run Gazprom decided to stop deliveries at the commented on the purchase and stressed that
news service Anadolu Agency reported, citing end of April. However, the country says it there are no substantial changes in ownership.
data from energy market regulator EPDK. could hardly find a cheap substitute for the oil “This is not about any substantial change —
Crude oil imports rose by 46.9% y/y to immediately and would need more time. Gazpromneft sold those shares to Gazprom.
2.34mn tonnes, while diesel edged up 1.4% Meanwhile, President Rumen Radev, I guess it was done because Gazpromneft
y/y to 670,906 tonnes. who since the start of the war has been was under sanctions and Gazprom was not.
Iraq was the largest supplier of oil to taking rather pro-Russian positions, said on Because Europeans need gas from Gazprom,
Turkey with 1.04mn tonnes. Turkey also May 9 that without a compromise allowing but they don’t need oil from Gazpromneft,”
imported 803,000 tonnes of oil from Russia the import of Russian oil, the the country Vucic said, TV N1 reported.
(Turkey has not imposed any sanctions would face a “monstrous inflation of which Serbia has not imposed sanctions on
on Moscow in response to the Ukraine thousands of small and medium-sized Russia. However, European Union sanctions
conflict amid its efforts to play a role as an structurally determining enterprises will not on Russia were problematic for NIS, as it was
intermediary attempting to secure peace survive”. majority owned by Gazpromneft.
and protect its crisis-stricken economy) and “Bulgarians are the poorest and the poorest According to the Central Securities
489,000 tonnes from Kazakhstan. [in terms of] energy in Europe, we must not Depository, NIS has a total of 163mn issued
Oil refinery output, meanwhile, rose by allow a rise of delivery prices,” Radev said. shares, of which 56.15% were previously
33.7% to 2.70mn tonnes, while domestic oil He added that he was expecting the owned by Gazpromneft. Following this
product sales increased by 6.8% y/y to 2.13mn government to have a clear idea of the way transaction, Gazpromneft owns 50% of NIS
tonnes. Bulgarians live, what they want and to listen shares. Gazpromneft has also lost the right to
The EPDK also reported that liquefied to their voices. Although once again criticising nominate a majority of members to the NIS
petroleum gas (LPG) imports increased by the government, Radev said now is not the board of directors.
4.6% y/y to 200,884 tonnes in February. appropriate time for a new general election. Alongside Gazpromneft, the Republic
Turkey bought most of the LPG from The Bulgarian Oil Association claims that of Serbia now owns 29.87% of NIS shares,
Algeria, the US, Spain, Kazakhstan, Russia an embargo on Russian oil would result in a Gazprom 6.15% and minority shareholders
and Malta. Domestic LPG sales amounted to shortage of fuel in the country and in price 13.98%. About 10mn NIS shares were sold in
256,000 tonnes, down 0.3% y/y. hikes. a block transaction at a price of RSD7.19bn
On the other hand, experts say that (€0.06bn).
Bulgaria does not need Russian oil and that
Bulgaria considers vetoing the EU embargo would not lift fuel prices. Hungary remains opposed to
“I hope that this “news” of a Bulgarian veto
EU’s embargo on Russian oil against the EC sanctions on the Russian oil Russian oil embargo
are false,” Nikola Yankov, managing partner
imports of Expat Capital and former deputy economy Hungary has continued to block the European
minister, wrote on Facebook.
Bulgaria is in talks to seek a delay of the “Bulgaria does not need and does not Union’s plans to impose an embargo on
implementation of the ban on Russian oil depend on Russian oil. [Lukoil] Neftochim Russian oil during talks over the weekend,
imports planned by the EU so that its sole can process any oil. It cannot work at all, if but some progress has been made on helping
refinery, Lukoil Bulgaria, gets time to adjust Lukoil decides to stop it. This will not cause countries that depend heavily on Russian
to process other type of oil. If it is not granted deficit of fuels in the country, nor will lift the crude, local media wrote on May 8.
the delay, the country could veto the EU’s prices,” he wrote. The EU Council is still working “in a
decision, Ivan Manev, an MP from There Are Yankov added that Bulgaria is importing spirit of solidarity to finalise the necessary
Such People (ITN), said in an interview with a significant part of its fuels from Austria, guarantees” for countries like Hungary that
public broadcaster BNT. Greece and Romania already and that the currently find themselves in a very specific
Bulgaria is almost completely dependent Bulgaria’s sole refinery has many times been situation with regard to supplying by pipeline
on Russia in terms of energy, although the idle due to repairs or installation of new from Russia, according to a joint statement
new government led by Prime Minister Kiril equipment. from Sunday.
Petkov is putting significant effort into quick Opposition commentators argue that
diversification of suppliers of oil and gas. Orban is trying to exaggerate the scale of the
According to Manev, who is also a member Change of ownership changes needed to Hungary’s oil supplies, and
of the parliament’s energy committee, the veto that Prime Minister Viktor Orban is trying to
is not very likely. However, the chairman of structure allowed NIS to use the issue to blame the EU for inevitable
the energy committee, Radoslav Ribarski, said increases in domestic energy prices, as well as
earlier in May that should Bulgaria not get a avoid EU sanctions to put pressure on Brussels over its continuing
derogation, the country will impose the veto. freezing of Reconstruction Funds (RRF).
“Talks are underway. The Bulgarian Russia’s Gazprom bought more than 10mn Some analysts argue that Orban is
government is determined to do whatever is shares of Nafta industrija Srbije (NIS) in a resorting to the same blackmailing strategy
necessary,” Ribarski said in an interview with transaction on the Belgrade Stock Exchange when he threatened to veto the EU’s 2021-
bTV. on May 6, the Central Securities Depository 2027 budget and the RRF funding because of
The country is seeking a two-year delay said on May 7. the rule of law conditionality mechanism.
to the implementation of an EU-wide ban on Following the transaction NIS is no longer The European Commission on Wednesday
imports of Russian oil and hopes to get an majority owned by Gazpromneft. The sale of officially proposed a full ban on Russian crude
answer by the end of this week. 6.15% of its shares to Gazprom — which is and oil product imports. Under the initial

P14 www. NEWSBASE .com Week 19 12•May•2022