Bulgaria to Seize Lukoil Refinery to Protect Economy From Sanctions Shock

Bulgaria is moving to take control of the Russian-owned Burgas refinery to shield the facility from US sanctions on Russia’s two biggest oil producers in response to its invasion of Ukraine. The government is preparing legislation that would allow a temporary state-appointed administrator to oversee and sell the Lukoil-controlled refinery—the country’s only oil-processing plant, Reuters reported on November 5.

The plan, revealed by Bulgarian outlet Mediapool, would remove Lukoil’s voting rights and ability to appeal during the sale process.

GERB party leader and former Prime Minister Boyko Borissov confirmed that the bill will be introduced in parliament this week, describing it as a necessary step to protect Bulgaria’s energy security.

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Analysts say the move aims to avoid potential supply disruptions and secondary sanctions after the US and UK blacklisted Rosneft and Lukoil last month. “This ensures stability and limits exposure to future sanctions risks,” said Martin Vladimirov of the Center for the Study of Democracy, Reuters cited.

Lukoil had already put the Burgas refinery on the market earlier this year, reportedly valuing it at $2 billion, with Swiss trading firm Gunvor named as a potential buyer. But details of how Gunvor might take control remain unclear.

The Burgas refinery is considered critical infrastructure, processing 240,000 barrels of crude per day. Sofia first introduced provisions for emergency state management of such assets in 2023, laying the groundwork for the current proposal to keep the plant running under Bulgarian oversight if sanctions pressure intensifies.

Previously, it was reported that Bulgaria would end the transit of Russian gas next year, Prime Minister Rosen Zhelyazkov announced during his visit to the United States for the UN General Assembly.

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