Bulgaria has only one month of fuel supplies as US sanctions target Lukoil

Bulgaria has roughly one month’s worth of gasoline left as it prepares for the start of US sanctions targeting Russia’s Lukoil, the owner of the country’s largest oil refinery.

The head of the state reserves agency revealed this week that gasoline stocks would last for about 35 days, while diesel supplies were sufficient for around 50 days, as reported by Oil Price.

The US and UK imposed sanctions last month on Lukoil and Rosneft—Russia’s two largest oil companies—over Moscow’s war in Ukraine, putting pressure on their extensive European operations. Lukoil controls the Burgas refinery on the Black Sea, along with most of Bulgaria’s fuel storage and pipeline infrastructure.

With the sanctions set to take effect on November 21, concerns have been mounting about Bulgaria’s access to fuel during the winter. The Burgas refinery is one of the most important assets in Lukoil’s international portfolio, which also includes hundreds of petrol stations.

Energy experts say Bulgaria has additional reserves of crude and refined products stored abroad, but it must import them before Lukoil’s pipeline network falls under the new restrictions.

“50% of the ready fuels are in other EU countries and some of the crude as well, which means that the government needs to activate these contracts as soon as possible,” said Martin Vladimirov, director of the Energy and Climate Program at the Centre for the Study of Democracy in Sofia, as quoted by Reuters.

Since the sanctions were announced, Bulgaria has taken steps to bolster energy security. It temporarily suspended exports of certain fuels—including diesel and aviation fuel—to EU member states.

Last week, parliament approved legal changes enabling the government to take control of the Burgas refinery and sell it to a new owner to protect the facility from US sanctions. The bill passed a committee review in less than 30 seconds before reaching the parliament floor.

This week, authorities carried out inspections and introduced additional security measures at the refinery, describing the move as necessary to safeguard critical infrastructure.

Battle over acquisition of Lukoil’s assets

Meanwhile, US private equity firm Carlyle has emerged as a potential buyer for Lukoil’s international assets, including those in Bulgaria, after a previous $22 billion deal with Switzerland-based Gunvor collapsed.

Carlyle is now in talks with Lukoil over acquiring its foreign operations, Reuters reported, citing unnamed sources. Although discussions remain preliminary, one source said Carlyle has applied for a license that would allow the transaction to proceed. Due diligence would need to begin soon, as sanctions coming into force on November 21 would make any dealings involving the US financial system illegal.

Lukoil is Russia’s most internationally active energy company, with upstream projects across the Middle East, Central Asia, and Latin America, as well as retail fuel networks in multiple countries, including the United States. It announced plans to sell its global operations after President Trump intensified pressure on Russia to push it toward peace negotiations with Ukraine.

Gunvor initially sought to buy the business for $22 billion, but the US government swiftly opposed the deal. As the Treasury Department said, “President Trump has been clear that the war must end immediately. As long as Putin continues the senseless killings, the Kremlin’s puppet, Gunvor, will never get a license to operate and profit.” Gunvor, which was co-founded by Russian businessman Genadiy Timchenko, who sold his stake in 2014, called the US remarks unfounded and false.

By Nazrin Sadigova