Politico: Bulgaria Urges Temporary Relief from US Measures Targeting Lukoil Refinery

Bulgaria is holding consultations with Washington to explore the possibility of obtaining a temporary exemption from the new US sanctions imposed on Russian oil companies, including Lukoil, Politico reported. The government’s concern is that the restrictions, set to take effect on November 21, could disrupt fuel supplies, trigger shortages, and heighten social tensions in the country. The sanctions, introduced by President Donald Trump, target Russia’s major oil producers Rosneft and Lukoil. Their implementation has already caused unease across several European states that rely on Russian energy. Bulgaria is among the most exposed, given that the Lukoil Neftochim Burgas refinery supplies roughly 80 percent of the country’s fuel. According to Politico’s sources, Sofia has reached out to Washington to clarify the procedure for requesting a deferral of the sanctions after November 21. Officials are worried that banks might refuse to process transactions related to the refinery, effectively halting its operations. Such a shutdown could lead to fuel shortages, public protests, and potentially destabilize the government. The publication notes that senior members of the cabinet fear this could create political instability and strengthen the position of President Rumen Radev, who earlier acknowledged that the crisis could topple the government. The Ministry of Energy has declined to comment officially on Politico’s inquiry. Former Environment Minister Julian Popov told the outlet that the authorities lack a clear contingency plan. He warned that the country is “not prepared” to deal with the fallout from Lukoil’s potential withdrawal and that fuel shortages remain a realistic threat. Popov suggested that Bulgaria might need to place the refinery under temporary state management, assisted by an international team of legal and energy experts. Others, however, believe the fears are overstated. Ilian Vassilev, Bulgaria’s former ambassador to Russia, described the government’s warnings as an attempt to delay the sale of Lukoil’s assets. He argued that there are credible investors ready to take over the Burgas refinery and said “there is no reason to panic.” The situation is part of a broader European challenge involving Russian energy assets. Hungary’s Prime Minister Viktor Orban personally requested an exemption from the US sanctions but was denied, while Germany was granted one after placing Rosneft’s local subsidiaries under state control. Meanwhile, Lukoil has announced an agreement with the energy trading company Gunvor to sell its overseas assets affected by the sanctions. The deal still requires approval from the US Office of Foreign Assets Control (OFAC). Politico also noted that Bulgarian Finance Minister Asen Vassilev recently warned that the government had no clear plan for how to respond if Neftochim Burgas were forced to suspend operations. The cabinet rejected that claim but provided no details about alternative measures. In parallel, Parliament swiftly approved a temporary ban on the export of diesel and aviation fuel - a move described by critics as rushed and poorly justified. The decision was presented as a measure to safeguard domestic fuel supplies but also highlighted the growing sense of uncertainty surrounding Bulgaria’s energy stability in the weeks ahead of the sanctions deadline. Source: Politico