Greek businessman partners with McKinsey to acquire Lukoil Neftohim

Bulgaria's attempts to distance itself from Russian influence find a basis in the sale of the largest petrochemical plant in Southeastern Europe - Lukoil Neftohim. Back in October 2023, then Finance Minister Assen Vassilev announced that the refinery was to be sold, and in February 2024 he even discussed the issue with US officials.

IntelligenceOnline reports that there is a strong interest in the plant. Such interest was expressed by the discreet Greek businessman Dimitrios Dotsios, a former member of Barton's Family Capital. He has teamed up with the American consulting giant McKinsey in his bid to buy the refinery.

According to documents and emails obtained by IntelligenceOnline, Dotsios was in contact with members of McKinsey to advise on the deal.

However, the information about the businessman's interest is not new. Already this past spring, the same publication reported that the American Aecus Inc., controlled by Dotsios himself, was interested in acquiring the plant.

The Times described Barton's Family Capital as "a secretive London-based investment firm with most of its money coming from wealthy American businessmen".

Looking for a buyer

At the end of last year, it became clear that the Lukoil group was starting a procedure to sell its business in Bulgaria. In a press release at the time, the Russian company explained that a buyer was being sought for both the refinery in Burgas and the network of gas stations throughout the country. The company justified its move with the decision of the Bulgarian government to cancel the EU-granted exemption for Russian oil earlier than planned as well as to avoid the tax on excess profits.

A few months earlier, official information came out that then Finance Minister Assen Vassilev had discussed with representatives of the US government the need to find a buyer for the Lukoil refinery in Burgas. The meetings were part of Vassilev's work during his visit across the Atlantic. Meeting with Amos Hochstein, US Deputy Assistant to the President and Senior Adviser on Energy and Investment, he discussed

the need to find a strategic buyer for the Burgas Lukoil refinery, as well as "the possibilities of reducing dependence on Russian gas and oil in the Balkans."

Work without Russian oil

As of March 1, the Burgas refinery “Lukoil Neftohim” no longer has the right to work with Russian oil. The restriction is based on a decision of the Bulgarian National Assembly at the end of last year, which terminated the derogation for the use of oil from Russia. The exception granted to Bulgaria was initially valid until December 5, 2024, but the country’s parliament once shortened it to October 1, 2024, after which a ban on the export of fuels produced from Russian oil was adopted in force from January 1, 2024. From March 1, the MPs decided to end operations with Russian raw materials at the refinery completely.

According to experts, the sale of the plant is "inevitable", although it will not be an easy task, as any potential buyer will demand a large discount since Lukoil may have problems withdrawing the money it will earn from the deal due to sanctions.

Translated by Tzvetozar Vincent Iolov