Bulgaria and Romania Move to Shield Lukoil Refineries as Sanctions Loom

Romania and Bulgaria are scrambling to shield their Russian-owned oil refineries from shutdowns as US sanctions on Lukoil and Rosneft take effect later this month, Politico reported on November 10.

In Bulgaria, lawmakers passed legislation allowing the government to appoint a special manager to oversee operations at Lukoil’s Burgas refinery—the country’s largest fuel producer—with authority to approve its sale or nationalize it if necessary.

Sofia is also seeking a temporary exemption from US sanctions against Lukoil and Rosneft, which are set to begin on November 21.

Romania is considering similar measures for Lukoil’s Petrotel refinery in Ploiești. Energy Minister Bogdan-Gruia Ivan said Bucharest is preparing to protect national fuel supplies while ending financial links to Moscow. Nationalization remains a “last resort,” according to Politico, citing government sources.

The crisis deepened after Swiss-based trader Gunvor withdrew its bid to purchase Lukoil’s international assets following a US Treasury warning that the firm would not receive a license for the deal.

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For Bulgaria, the stakes are particularly high: the Burgas plant provides around 80 percent of the country’s fuel, raising fears of shortages if operations halt.

Romania’s Petrotel supplies about 20 percent of domestic demand, though analysts say a shutdown could disrupt fuel exports to Moldova and drive short-term price increases, according to Politico.

Germany has already secured a six-month waiver for its Rosneft-controlled Schwedt refinery, while Hungarian Prime Minister Viktor Orban is lobbying Washington for a similar exemption for Russian pipeline oil imports.

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Analysts say both the Burgas and Petrotel refineries could continue functioning safely if new ownership is found—but finding buyers willing to navigate sanctions and high costs will be difficult, Politico wrote.

Ivaylo Mirchev, an MP for the opposition Democratic Bulgaria, however, warned that hasty state takeovers could invite arbitration claims from Lukoil and Ana Otilia Nuțu, an energy analyst at the Expert Forum think tank said that they can also complicate coordination with the EU, which has urged member states to align any refinery sales with broader sanctions policy.

Previously, it was reported that Swiss oil trader Gunvor has withdrawn from a planned deal to buy the international assets of Russian energy giant Lukoil after the US Treasury branded the company a “Kremlin puppet” and warned Washington would not approve the transaction, as the company announced.

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