Bulgaria moves to seize, sell Russian energy giant's refinery amid sanctions pressure
Bulgaria is preparing legislative amendments that would allow authorities to seize the Lukoil-owned oil refinery in Burgas and sell it to a new owner, Bulgarian media outlet Capital reported on Nov. 6.
The move aims to protect Bulgaria's only refinery — and a major supplier — from the impact of U.S. sanctions imposed on Russia's largest oil companies, Rosneft and Lukoil.
Washington's Oct. 22 sanctions froze the firms' U.S.-based assets and threatened secondary penalties for foreign entities engaging with them.
Under the proposed legislation, an external administrator would be appointed to oversee the refinery's sale, while Lukoil would lose its voting rights and the ability to contest the decision.
The Burgas facility supplies more than two-thirds of Bulgaria's domestic fuel.
The initiative follows Bulgaria's Oct. 31 decision to temporarily suspend exports of diesel and aviation fuel — including to EU markets — to prevent future shortages amid sanctions.
Bulgaria fully stopped importing Russian crude oil in March 2024, shifting to alternative sources.
The legislative plan also comes as Russia's energy exports face mounting pressure from the latest U.S. sanctions and Ukrainian strikes on oil infrastructure.
According to Bloomberg, Russia's seaborne crude shipments fell sharply in early November — the largest weekly drop since January 2024 — as buyers in Asia paused purchases following U.S. measures against Rosneft and Lukoil.
The combined effect of reduced Russian output has boosted profits among Western oil majors.
Reuters reported that refining profits for ExxonMobil, Chevron, Shell, and TotalEnergies rose 61% in the third quarter compared to the previous quarter, contributing to a 20% increase in overall earnings as global supply disruptions pushed refining margins higher.
Dominic Culverwell
