Bulgaria is preparing legislation that could allow the government to take control of Russian oil company Lukoil’s assets in the country, according to Bulgarian news outlet Capital. The move comes as new US sanctions against Moscow’s oil sector force Lukoil to exit international markets and sell its overseas holdings.
US sanctions announced in October targeted Russia’s top oil producers, Rosneft and Lukoil, intending to cut Moscow’s wartime energy revenue. The measures ban Western firms from trading, shipping, or insuring their oil, forcing Lukoil to scale back abroad and prompting countries like Bulgaria to reassess its assets under growing restrictions.
Under the proposed bill, a state-appointed manager could assume full control of Lukoil’s Bulgarian refinery and fuel operations, with the power to sell the company’s assets and deposit proceeds into a government account. The draft law has not yet been submitted to parliament but would effectively suspend the Russian company’s management and ownership rights.
The measure follows Lukoil’s plan to sell its international assets, including its Bulgarian refinery, to Swiss-based trader Gunvor, pending US approval. The company announced its global withdrawal after Washington imposed sanctions on Rosneft and Lukoil in October, barring Western firms from handling Russian oil from November 21.
Lukoil’s Burgas refinery, the largest in the Balkans, has been a key supplier of fuel to Bulgaria and neighboring countries. US sanctions have raised questions over the refinery’s future operations and energy security in the region.
The draft law reflects growing pressure on European governments to comply with US sanctions and cut Russian energy influence. Bulgaria, which had already limited Lukoil’s exports earlier this year, is now weighing whether to nationalize its operations as part of that broader effort.
