Bulgarian Constitutional Court overturns Lukoil special manager powers

The Bulgarian Constitutional Court (KС) ruled unanimously that several provisions of recent amendments to the Law on Administrative Regulation of Economic Activities, which granted the state extraordinary control over the oil company Lukoil and its Bulgarian refinery, are unconstitutional.

The contested clauses allowed the appointment of a “special commercial manager” with voting rights and authority to conduct capital transactions, bypassing normal corporate governance. The Court said the measures breach constitutional principles of the rule of law, separation of powers, protection of private property and free economic initiative, stating that the restrictions “seriously infringe on the essence of property rights”. The case was brought by 51 MPs; all twelve judges participated. The law had been passed quickly after a presidential veto by Rumen Radev was overridden, and the special manager role had been held by former National Revenue Agency head Rumen Spetsov and later Evgeni Simeonov. The decision removes the special manager’s powers and restores shareholders’ rights.