Bulgaria moves to prevent shutdown of its only oil refinery ahead of US sanctions

Bulgaria is racing to forestall the shutdown of its lone lipid refinery earlier U.S. sanctions connected its Russian proprietor instrumentality effect aboriginal this month

SOFIA, Bulgaria -- Bulgaria is racing to forestall the shutdown of its lone lipid refinery earlier U.S. sanctions connected the Russian owner instrumentality effect aboriginal this month.

Parliament successful Sofia approved ineligible changes that assistance further authorities authorization to a government-appointed manager of the Lukoil-owned Burgas refinery connected the Black Sea coast.

The determination came aft a apical planetary commodities trader dropped plans to acquisition Lukoil’s planetary assets, arsenic the institution rejected U.S. authorities allegations of being “the Kremlin’s puppet.”

Lukoil said it was selling its planetary assets successful effect to U.S. sanctions aimed astatine pushing Russia to hold to a ceasefire successful its warfare against Ukraine. The institution has stakes successful lipid and state projects successful 11 countries, including the Burgas refinery, arsenic good arsenic state stations successful galore countries.

Under the caller amendments, the manager is granted important operational power of the refinery, including the close to merchantability its shares. Opposition lawmakers criticized the changes, saying they could punctual ineligible enactment against Bulgaria.

“This idiosyncratic volition beryllium granted specified bonzer powers that, successful the end, Lukoil volition writer Bulgaria — and the wealth volition extremity up successful Russia,” said Ivaylo Mirchev, person of the Democratic Bulgaria alliance.

The ruling conjugation introduced the changes, arguing that the U.S. sanctions, scheduled to instrumentality effect connected Nov. 21, “will efficaciously pb to the shutdown of the refinery’s operations owed to the refusal of each counterparties to marque payments to Lukoil-owned companies.”

In 1999, the Russian lipid elephantine Lukoil acquired the Neftochim works connected the Black Sea. It is the largest lipid refinery successful the Balkans. Recent estimates by experts acceptable the worth of the refinery astatine 1.3 cardinal euros ($1.5 billion).

The Lukoil-Neftochim refinery is Bulgaria’s largest company, playing a important relation successful the country’s economy. In 2024, it had a turnover of astir 4.7 cardinal euros ($5.4 billion). Its nationwide web of lipid depots and state stations, arsenic good arsenic its proviso of ships and aircraft, gives it near-monopoly status.

Last week, Bulgaria imposed impermanent restrictions connected the export of petroleum products, including those destined for different European Union members, to guarantee capable home supplies up of caller U.S. sanctions connected Russian energy. The prohibition covers exports of petroleum products, including diesel and aviation fuel.

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