Lukoil-owned facilities in Bulgaria and Romania risk ceasing operations following Washington’s blacklisting of the oil major
EU members Bulgaria and Romania have been working to save refineries owned by Russian oil giant Lukoil following US sanctions on the company, Politico has reported. Lukoil controls Bulgaria’s largest refinery, Neftochim Burgas, as well as Romania’s Petrotel.
Washington imposed sanctions on Lukoil last month, accusing Russia of lacking commitment to the Ukraine peace process. Moscow says it remains open to talks but wants a comprehensive deal addressing the root causes of the conflict. The measures take effect on November 21.
According to a Politico report on Friday, Bulgarian officials fear the sanctions could shut down Burgas – which supplies up to 80% of the country’s fuel – as banks pull support, potentially triggering fuel shortages and protests. Sources said Sofia is seeking an exemption and has asked Washington to delay the measures, although no details of the talks have been disclosed. Separately, Bulgarian lawmakers on Friday passed a bill allowing the government to take control of Burgas if necessary to shield it from sanctions, as well as approve its sale or nationalize it.
Romania’s fuel supply faces less risk from sanctions on Lukoil, as Petrotel covers about 20% of demand, although Bucharest is also considering seeking a sanctions extension, Politico sources claimed. Analysts told the outlet that a potential Petrotel shutdown would cause only mild price increases within the country, but could disrupt exports to neighboring Moldova, which relies heavily on Romanian supplies. Romania was the main supplier of oil products for Moldova in 2024, providing 99.1% of gasoline imports and 74.1% of diesel.
One source claimed that nationalization of Petrotel, while also on the table, is seen as a “last option” by Bucharest.
Days after the US sanctions were announced, Lukoil said it had accepted an offer from energy trader Gunvor Group to buy its subsidiary holding all foreign assets. Gunvor sought US Treasury approval – a required step for the deal to take place – but withdrew its bid after being accused of Kremlin ties. Gunvor has called the accusation “fundamentally misinformed and false.”
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Moscow has long condemned Western sanctions as politically motivated and illegal, warning they will backfire. The Kremlin says energy sanctions violate free-trade principles and risk destabilizing global markets and pushing fuel prices higher.
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