Bulgaria is maintaining active coordination with both the European Union and the United States regarding the uncertain future of the Lukoil Neftochim Burgas refinery, said Pavela Mitova, Chair of the Parliamentary Committee on Energy. She confirmed that domestic fuel supplies remain stable and that reserves are sufficient for the coming months, but emphasized that a decision on the refinery’s long-term operation must be made soon.
Mitova explained that Bulgaria has contacted the U.S. Office of Foreign Assets Control (OFAC) to seek clarification and explore potential solutions that would allow the refinery to continue operating within the framework of existing sanctions. One of the possible measures under consideration is the appointment of a special state administrator to oversee refinery operations, aimed at protecting national interests and ensuring an uninterrupted energy supply. The temporary suspension of diesel and jet fuel exports to both EU and non-EU markets was described as a precautionary measure to safeguard the domestic market.
The uncertainty surrounding the refinery’s future follows the U.S. Treasury Department’s decision on October 22 to expand sanctions on Russia’s two largest oil companies, Rosneft and Lukoil. The new restrictions are intended to tighten financial pressure on Russia’s energy sector, considered a major source of funding for its military actions in Ukraine.
In Bulgaria, Lukoil operates through its Swiss-based subsidiary Litasco, which owns 89.97 percent of Lukoil Neftochim Burgas, the largest oil refinery in the Balkans. Another 9.88 percent is held by another Lukoil affiliate, while 0.15 percent belongs to over 7,700 minority shareholders. Lukoil also controls Lukoil Bulgaria, the country’s leading fuel distributor, with an estimated 40–60 percent share of the wholesale market.
Due to Lukoil’s ownership structure, these Bulgarian energy assets now fall directly under the scope of U.S. sanctions. This could restrict their access to international banking systems and supply chains that rely on the U.S. dollar, raising serious concerns about Bulgaria’s energy security and fuel supply stability. In response, the Bulgarian Government is exploring several scenarios to maintain refinery operations and protect the national energy infrastructure from potential disruptions.
Earlier this year, reports suggested that Lukoil was preparing to sell its Bulgarian refinery, valued at around two billion dollars. Kazakhstan’s state energy company KazMunayGaz confirmed it had been invited to participate in the tender, while Hungarian Prime Minister Viktor Orbán stated that MOL was among seven interested bidders.
The situation has also reignited public debate over whether the refinery should return to state ownership. The Burgas complex was privatized in stages between 1997 and 2009, and re-nationalization is now being discussed as one of the possible measures to safeguard Bulgaria’s strategic energy independence.
