Kommersant reported that the Bulgarian anti monopoly commission has begun an investigation into LUKoil Bulgaria, the Bulgarian trading arm of Russia largest privately run oil company LUKoil over suspected abuse of its dominant market position and possible participation in cartel agreements.

The antimonopoly watchdog said in a statement that "We have studied contracts between LUKoil Bulgaria and its partners and wholesale traders, and there is suspicion some contract conditions and trade practices may lead to market closure."

A LUKoil official told Kommersant the company adhered to existing legislation.

The paper said if found guilty, LUKoil will face a fine amounting to 8% of the profits of its Bulgarian arm.

LUKoil Bulgaria sells fuels produced by LUKoil Neftochim Burgas, the only refinery in the country. Its share of the local wholesale fuel market is estimated at about 70%. It also holds a 26% share of the retail market having a network of 200 filling stations.

(Sourced from Kommersant)