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Bulgaria seeks stability amid Lukoil sanctions, no investor proposals yet

Bulgarian Energy Minister Zhecho Stankov stated that the Ministry has not received any official investor proposals for the Bulgarian subsidiaries of Russian Lukoil. Recent letters to the Ministry mostly relate to his outreach to major international companies to ensure stable diesel and petrol supplies if the Burgas refinery halts operations. Most communications involve companies offering crude oil deliveries, and all information is passed to special administrator Rumen Spetsov, who has overseen Lukoil’s four Bulgarian entities since 14 November.

Minister Stankov stressed that Bulgaria’s energy security is the top priority and highlighted the importance of securing a temporary waiver, similar to exemptions granted by the UK and US. On 22 October, Washington expanded sanctions against Russia, adding Rosneft and Lukoil to the list of designated entities, aiming to pressure Russia’s energy revenues that fund military actions in Ukraine.

Lukoil’s Bulgarian operations include the Neftochim Burgas refinery, a nationwide fuel retail network, aviation refueling, and a sustainable energy supply trading arm. Stankov emphasized that Bulgaria must demonstrate to sanctioning authorities that no funds from the subsidiaries will be transferred abroad. Parliament passed legislation ensuring full compliance, with the special administrator acting as a temporary shareholder and supervising all payments and operations. One scenario allows for potential state acquisition of the refinery, but this would require formal approval by the Council of Ministers.

Regarding Parliament’s previous ban on diesel and aviation fuel exports, Stankov said it made sense before sanctions were temporarily suspended, but lifting the restriction could now help increase budget revenues. The refinery is operating at minimal load, producing only for domestic needs at roughly 10,000 tons daily. Nevertheless, the Minister emphasized that ensuring sufficient and affordable fuel for households and businesses remains a higher priority than budget concerns.

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