Prime Minister Rosen Zhelyazkov stated that the long-term outlook of the Lukoil Group in Bulgaria will largely depend on the broader diplomatic dialogue between Washington and Moscow. He emphasized that the company’s future is closely tied to efforts to end the war in Ukraine and achieve a durable peace agreement.
Addressing questions on whether the Government might intervene and take over the refinery if sanctions persist, PM Zhelyazkov explained that every action undertaken by Bulgarian institutions aims to demonstrate to the US Office of Foreign Assets Control (OFAC) that Bulgaria is fully implementing the sanctions regime. Although this positions the country under strict external restrictions, he stressed that it remains the only viable path to keeping the refinery operational.
Under the existing legal framework, a state-appointed special administrator currently holds shareholder authority and has the power to transfer ownership to an approved buyer. However, such a transfer would still require US licensing, and the proceeds would remain frozen under OFAC rules.
Regarding Lukoil Neftochim Burgas, the Prime Minister noted that the refinery drastically reduced its output in 2025 due to low oil prices and challenging market conditions driven by the conflict. The plant operated solely for domestic supply, which resulted in a major fiscal impact—nearly 500 million euros in VAT and excise revenue failed to materialize due to the reduced level of operations.
PM Zhelyazkov further highlighted that four Bulgarian Lukoil-affiliated companies—Neftochim Burgas, Lukoil Bulgaria, Lukoil Jet, and Lukoil Bunker—have been significantly affected by the sanctions. Although US sanctions do not legally apply within the EU, the companies’ reliance on global financial systems effectively prevented them from paying for crude oil or conducting standard financial transactions.
He emphasized that without the legal amendments adopted earlier in the year, the refinery would have faced an immediate shutdown. The purpose of these new laws, he said, was to enforce the sanctions framework, maintain continuity of refinery operations, and ensure that no revenue—directly or indirectly—flows to Russia.
