Bulgaria is in the race so as to prevent shutdown of the only oil refinery it has before U.S. sanctions on the Russian owner go on to take effect later in November 2025. The Parliament in Sofia has gone on to approve the legal changes, which go on to grant additional state authority to the Lukoil-owned Burgas refinery’s government-appointed manager on the Black Sea coast.
This move came after the government-appointed manager of the top international commodities trader went on to drop plans to purchase international assets of Lukoil, as the company rejected U.S. government allegations of being a Kremlin puppet. Lukoil remarked that it was selling its international assets in response to the U.S. sanctions that were aimed at pushing Russia to go ahead and agree to a ceasefire in the war against Ukraine. The company happens to have stakes in oil and gas projects throughout 11 countries, which includes the Burgas refinery and also gas stations throughout many countries.
As per the new amendments, the manager happens to be granted quite a significant operational control of the refinery, which also includes the right to sell its shares. Opposition lawmakers have criticized the alterations, stating that they could go on to prompt legal action against Bulgaria.
According to the leader of the Democratic Bulgaria alliance, Ivaylo Mirchev, this person will be granted extraordinary powers, and, in the end, Lukoil is going to end up suing Bulgaria, and the money is going to end up in Russia.
It is well to be noted that the ruling coalition went ahead and introduced the changes, arguing that U.S. sanctions, which are scheduled to take effect from November 21, are going to effectively lead to the shutdown of the operations of the refinery because of the refusal of all the counterparties to make payments to the companies owned by Lukoil. Apparently, in 1999, Lukoil, which happens to be the Russian oil giant, went on to acquire the Neftochim plant based on the Black Sea. It happens to be the largest oil refinery in the Balkans. As per the recent estimates made by experts, they happen to set the value of the refinery at somewhere around 1.3 billion euros, which is equivalent to $1.5 billion.
Apparently, Lukoil-Neftochim refinery happens to be the largest company in Bulgaria, happens to play quite a significant role when it comes to the economy of the country and the move to prevent shutdown of the only oil refinery in Bulgaria is understood. In 2024, it happened to have a turnover of almost 4.7 billion euros, or $5.4 billion. Its countrywide network of oil depots as well as gas stations, along with its supply of ships and also aircraft, goes on to give it a near-monopoly status.
Recently, Bulgaria went on to impose temporary restrictions on the export of petroleum products, which includes the ones for other EU members, in order to make sure of sufficient domestic supplies ahead of the new U.S. sanctions when it comes to Russian energy. This ban happens to cover the exports of petroleum products, which includes the likes of diesel as well as aviation fuel.
