Bulgaria’s National Assembly has taken steps that move in different directions regarding the expanded powers granted to a Government-appointed administrator for the country’s only oil refinery, Lukoil Neftochim Burgas.
President Rumen Radev vetoed the amendments, arguing that the changes undermine the rule of law, contradict key European legal standards, and expose public finances to unnecessary risks. He cautioned that the new provisions introduce an indirect form of nationalization by allowing refinery assets to be transferred to unspecified third parties, creating opportunities for misuse of authority and harming Bulgaria’s investment climate.
Despite these warnings, the National Assembly voted the following day to override the presidential veto and adopted the legislative package without changes. The new framework greatly expands the responsibilities of the special administrator, including the authority to sell both the Lukoil Neftochim refinery and the fuel retailer Lukoil Bulgaria, which are subject to United States sanctions targeting the Russian Lukoil group and its subsidiaries.
Pressure to appoint a special administrator increased after Swiss commodities trader Gunvor withdrew its bid for Lukoil’s foreign assets. The withdrawal followed a statement from the US Treasury labeling the company as aligned with Russian interests and stating that it would not be eligible to receive the licenses required to operate the assets.
Following the parliament’s decision, Bulgaria must appoint the special administrator by 21 November, which is the deadline for determining how the country will manage the refinery under the current sanctions regime.
