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Radev vetoes law, citing constitutional and financial

risks

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Parliament can override presidential veto in Bulgaria

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Sofia has sought sanctions exemption for Lukoil operations

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Energy minister says oil supplies are guaranteed for

months

SOFIA, Nov 12 (Reuters) - Bulgaria's President Rumen

Radev on Wednesday vetoed legal changes that would allow the

government to seize control of Lukoil's Burgas oil refinery and

sell it to protect the plant from the impact of U.S. sanctions.

Radev returned the legislation to parliament for further

discussion, saying the changes failed to provide protection

against future financial claims against the state, violated

Bulgaria's constitution and posed a risk to public finances.

Parliament adopted the legal changes last Friday, expanding

the powers of a special commercial manager appointed by the

government who will be able to oversee the continued operation

of Lukoil's refinery in Bulgaria beyond November 21, when the

U.S. sanctions are due to take effect, and to sell the company.

"The scope of application of the law has been expanded

unjustifiably and dangerously," Radev said in a statement,

adding that guarantees designed to reduce the risk of future

claims against the state had been scrapped without reason.

In Bulgaria, however, the president is a largely ceremonial

figure and parliament can override his veto.

The U.S. and Britain last month imposed sanctions on Lukoil

and Rosneft, Russia's two biggest oil

companies, over Moscow's war in Ukraine, threatening their

operations that still sprawl across Europe.

BULGARIA HAS REQUESTED SANCTIONS EXEMPTION FROM US BODY

Bulgarian Energy Minister Zhecho Stankov told parliament on

Wednesday that Sofia had requested a sanctions exemption from

the U.S. Office of Foreign Assets Control (OFAC) on October 27.

He provided no further details on that issue.

Stankov also said a key task of the new state-appointed

manager would be to organise round-the-clock monitoring to

prevent funds from subsidiaries being directed to the sanctioned

companies.

The U.S. sanctions have raised concerns about fuel supplies

ahead of winter in Bulgaria, where Lukoil runs the Burgas

refinery, a key part of the company's foreign business empire,

and hundreds of petrol stations.

Stankov said the security of fuel supplies for household

consumers was guaranteed and that Bulgaria holds six-month

reserves of petrol, four-month reserves of diesel and two-month

reserves of aviation fuel in its storages.

He said the U.S. sanctions would directly hit four Bulgarian

companies - Lukoil Neftochim Burgas, Lukoil Bulgaria, Lukoil

Aviation Bulgaria and Lukoil Bulgaria Bunker - following the

suspension of banking services after November 21.