Lukoil Urges Bulgarian Authorities to Facilitate Sale of Sanctioned Assets Amid U.S. Pressure

On Wednesday, the Russian oil company Lukoil urged Bulgarian officials to refrain from obstructing its attempts to divest its assets within the country, following the government’s takeover of these assets in response to U.S. sanctions imposed on the firm.

Last week, the Bulgarian government appointed a state representative to manage a significant refinery that Lukoil is aiming to sell as a consequence of sanctions by the United States related to the ongoing conflict in Ukraine.

«Lukoil is undertaking all necessary measures to finalize the sale of the refinery, the network of filling stations, and other properties in Bulgaria to a new owner, and anticipates that the actions of the external administrator will not disrupt this process,» the company stated.

The second-largest oil producer in Russia further indicated, «The Company retains the right to pursue legal avenues to safeguard its rights and legitimate interests in the event of any infringement.»

Lukoil has maintained a near-monopoly in Bulgaria through its extensive network of oil storage facilities, gas stations, and businesses catering to maritime and aviation fuel supply.

Among Lukoil’s assets in Bulgaria is the Neftochim plant, the largest oil refinery in the Balkans, located in Burgas by the Black Sea, which has been under its ownership since 1999.

The U.S. initially provided Lukoil with approximately a month to sell the refinery, raising alarms within the Bulgarian government about the potential shutdown of this critical fuel supply facility.

However, Washington has since extended the deadline to April 29 of the following year.

In late October, the United States added Russia’s largest oil companies, Lukoil and Rosneft, to its list of sanctioned entities, a registry that many countries adhere to.

Businesses that engage with these sanctioned entities risk facing secondary sanctions, which could restrict their access to U.S. banking institutions, traders, shipping companies, and insurers, all essential components of the commodities market.