Bulgaria’s parliament has approved legal changes that give a government-appointed manager broader control over the Lukoil refinery in Burgas as the country races to avoid a shutdown before U.S. sanctions hit the Russian owner.
The move is aimed at the Black Sea facility that Bulgaria depends on for domestic fuel supply. According to the AP report, the amendments grant the manager significant operational authority, including the right to sell shares. Lawmakers backing the measure argued that the refinery could otherwise be forced to stop operating once sanctions begin to bite on Nov. 21.
The legislation comes after a top international commodities trader abandoned plans to buy Lukoil’s international assets. Lukoil said it was selling in response to U.S. sanctions designed to pressure Russia into agreeing to a ceasefire in its war against Ukraine. The company holds oil and gas assets in 11 countries, including the Burgas refinery and a network of gas stations.
The refinery, known as Lukoil-Neftochim, is Bulgaria’s only oil refinery and the largest in the Balkans. AP reported that it was acquired by Lukoil in 1999 and that experts recently estimated its value at 1.3 billion euros. The plant also plays a central role in the national economy, with a 2024 turnover of about 4.7 billion euros.
Opposition figures have warned that the changes could trigger legal action against Bulgaria. Democratic Bulgaria lawmaker Ivaylo Mirchev argued the new powers were so broad that any eventual dispute could end with Lukoil suing the state. The governing coalition, however, said the measures were necessary because counterparties would refuse to make payments to Lukoil-owned firms once the sanctions start.
Bulgaria has also imposed temporary restrictions on exports of petroleum products, including diesel and aviation fuel, to preserve domestic supply ahead of the sanctions deadline. That shows how quickly the government is trying to contain the economic fallout.
The stakes are high because the Burgas refinery is not a minor industrial asset. AP described its nationwide network of depots and fuel stations as giving it near-monopoly status in Bulgaria. That means any interruption could spread far beyond the plant itself and into transport, logistics and retail fuel markets.
For now, the government’s answer is to concentrate authority in a state manager and keep the refinery operating through the sanctions window. Whether that legal framework can hold against possible corporate challenge, and whether it will be enough to maintain supply, remains the central risk facing Sofia.
