Bulgaria’s Parliament has passed sweeping legislation granting a state-appointed special commercial administrator (SCA) full control over the Bulgarian assets of Russian oil giant Lukoil, effectively suspending shareholder authority. The administrator now has exclusive power over management decisions, share transactions, and asset sales.
This marks the second major intervention involving Lukoil in two months, following an earlier temporary export ban on petrochemical products, including diesel, aimed at stabilizing Bulgaria’s fuel market amid growing uncertainty over the company’s future.
The move comes as US sanctions intensify pressure on Russian energy firms. On October 22, Washington expanded restrictions under Executive Order 14024 to target Russia’s largest oil producers, Rosneft and Lukoil, in an effort to cut off Moscow’s war funding. The sanctions have already reverberated through Europe, with Swiss trader Gunvor recently withdrawing its bid for Lukoil’s overseas assets after the US Treasury labeled it a “Russian proxy.”
Lukoil’s Bulgarian holdings include over 200 petrol stations, the Lukoil Neftochim Burgas refinery—the largest in the Balkans—as well as Lukoil Aviation Bulgaria and Sustainable Energy Supply, which trades natural gas and hydrocarbons. Most assets are owned by Litasco, Lukoil’s Swiss subsidiary (89.97 %), directly linking the Bulgarian operations to sanctioned entities and complicating access to global banking and financing.
Under the new law, the SCA’s authority will extend indefinitely beyond November 21, 2025, with a single appointee overseeing all decisions. The administrator can restructure management, appoint new representatives, and execute asset sales with government approval. Proceeds will be held in a special account managed by the Ministry of Finance via the Bulgarian Development Bank.
The government argues the measure protects national energy security and ensures continuity of vital operations, while critics warn it represents an unprecedented expansion of state control over private property.
