Bulgaria's deputy prime minister and economy, investment and industry minister Alexander Pulev said the Rheinmetall plant in Bulgaria could start operating within 30 months. He added that the government is working to secure the lowest fuel prices in Europe.
Pulev said the cabinet has held several meetings with Rheinmetall representatives to discuss the main terms of the deal. Bulgaria has set one condition: full technology transfer, so local defence firms can modernise their plants.
The sites offered for the plant so far need fresh talks and new inspections because they lack power, water and basic infrastructure. "The previous sites simply had no way to supply electricity, water or any of the other basic needs for a production site and a proper gunpowder plant," Pulev said.
Fuel prices depend on geopolitical shifts the Bulgarian government cannot control, Pulev said. He cited the International Energy Agency's assessment that the current energy crisis is the worst on record.
Any steps Bulgaria takes must be agreed with the EU and must not break market principles, Pulev said. He did not rule out updating the support package again as part of the government's policy. Uncertainty over fuel prices, he added, will last another 6 to 12 months after the conflict between the US and Iran ends.
The support package for Bulgarian consumers is worth 300 million euros in total. Of that, 30 million euros go straight to the poorest and most vulnerable people, Pulev said, stressing this is not a case of handing out so-called "helicopter money."
Pulev also commented on the situation at Lukoil. He said special commercial administrator Evgeni Simeonov is running the refinery well, professionally and openly, and that it is now operating at close to full capacity.
The refinery would have come close to insolvency under the previous administrator had the management model not changed, Pulev said. Back then it was running at only about 40% of capacity and faced a serious cash crunch.
Pulev also discussed with Lukoil's special commercial administrator his cooperation with the Commission for Protection of Competition, which is due to check how fuel prices are set at the refinery.
Asked about a New York Times report on a deal involving Lukoil's international assets, Pulev said Bulgaria must respect ownership of those assets and act responsibly toward its EU, UK and US partners. As an EU member, he added, Bulgaria cannot nationalise foreign assets.
The method for setting a "fair value" is not a hard regulatory ceiling, the deputy prime minister explained, but a recommended price based on objective data.
Pulev also met International Monetary Fund representatives to discuss the windfall tax. He described it as a temporary step that won't burden the whole industry, but will hit only certain sectors — and only their excess profits.
Some Bulgarian retail chains have signed up voluntarily to the "Basket of Care" scheme, offering discounts of between 15% and 60%. Pulev asked the chains to set up a separate, clearly marked stand for products covered by the scheme.
The deputy prime minister and other ministers have received reports that some chains are squeezing Bulgarian producers and suppliers. Pulev said talks with the retail chains over "Basket of Care" will continue.
Foreign investors still view Bulgaria positively, Pulev said, mainly because political risk has disappeared since the country's severe political crisis.