UK extends sanctions licence for LUKOIL’s Bulgarian operations to 2026

The UK Treasury’s Financial Sanctions Implementation Office has extended its licence allowing transactions with LUKOIL’s Bulgarian subsidiaries, Lukoil Bulgaria EOOD and Lukoil Neftochim Burgas AD, until February 14, 2026, despite the company’s inclusion in the UK sanctions list in October.

LUKOIL was added to the UK list on October 15 and to the US sanctions list on October 22, with Washington granting only a short wind-down period until November 21. The restrictions derailed LUKOIL’s planned sale of its foreign assets to commodity trader Gunvor, after the US Treasury said it would not issue a licence for the deal while the war in Ukraine continued. Gunvor subsequently withdrew its offer, Caliber.Az reports per Russian media. 

LUKOIL has operated in Bulgaria since 1999, owning the 8.8-million-tonne Burgas refinery and a network of more than 500 petrol stations. EU bans on Russian oil imports have constrained its operations, prompting the company to consider selling its Bulgarian business, though it still retains its major assets in the country.

Bulgaria is now seeking a further six-month extension of US sanctions relief to avoid disruptions to the refinery and domestic fuel market.

By Sabina Mammadli