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Lukoil’s Litasco challenges Bulgaria on Russian crude import ban

The trading arm of Lukoil in Russia, Litasco, is based in Switzerland. It said on Wednesday that Bulgarian measures against it violated the multilateral Energy Charter Treaty and it had filed a dispute notice against the country.

Bulgaria has halted Russian crude exports and limited exports of all refined products derived by Russian crude at Litasco's Burgas oil refining facility in the country, which produces 190 000 barrels per day. The government has also made legal changes to seize and sell the assets.

The 1998 ECT allows for energy companies to sue government over policies that harm their investments. However, in 2024 the European Union has unanimously decided to withdraw from the treaty due to concerns that it undermines efforts against climate change.

The ECT does, however, contain a sunset clause that binds departing members for 20 years to its provisions.

The Bulgarian Energy Ministry?didn't immediately respond? to a comment request.

In 2023, the country became the fourth largest buyer of Russian oil by sea. It purchased over 100,000 bpd. (Reporting and writing by Shadia Nasralla and America Hernandez; editing by Louise Heavens).

(source: Reuters)