UK Grants Crucial Three-Month Sanctions Reprieve to Lukoil Bulgaria as Sofia Moves to Seize Burgas Refinery

Sofia, November 17, 2025 — In a high-stakes move that underlines Bulgaria’s energy and economic fragility, the United Kingdom has issued a three-month sanctions exemption for two Lukoil subsidiaries in Bulgaria, including the Burgas oil refinery — the largest refinery in the Balkans.

This temporary license, granted by the UK’s Office of Financial Sanctions Implementation, allows Lukoil Bulgaria and Lukoil Neftochim Burgas to continue business with UK banks and companies, averting an immediate collapse in operations amid sweeping Western sanctions. The exemption is valid until February 14, 2026, according to TASS.

Bulgaria’s Strategic Response: Seizure and Sale Plan

The reprieve comes alongside aggressive steps by Sofia to shield its critical energy infrastructure from the fallout of sanctions. The Bulgarian Parliament recently overruled a presidential veto, passing legislation that enables the state to take control of the Burgas refinery, appoint a special commercial administrator, and potentially sell its stakes.

President Rumen Radev had opposed the measure, warning it carried legal risks and could expose the state to future financial claims. But with a majority vote (128–59), lawmakers pushed the bill through, prioritizing national energy security ahead of the US sanctions deadline set for November 21.

Justice Minister Georgi Georgiev confirmed that Lukoil Burgas falls squarely under the scope of these sanctions. In response, Sofia has moved to safeguard its fuel supplies — both through the legal takeover and by publicly reassuring citizens that reserves are adequate. Energy Minister Zhecho Stankov told the public that Bulgaria has “sufficient fuel reserves … to guarantee the security of supply at affordable prices.”

Security Tightens as Tensions Rise

Amid this flurry of legislative and diplomatic maneuvering, Bulgarian authorities have stepped up security around the Burgas refinery. According to official sources, military police, anti-drone systems, and additional inspections have been deployed to guard this strategic facility.

Meanwhile, the newly empowered special administrator will have sweeping authority — including the power to sell refinery shares, without Lukoil’s ability to block or appeal such decisions.

What’s at Stake

• The Burgas refinery is central to Bulgaria’s energy infrastructure. Losing it—or having operations disrupted—could have serious implications for fuel supply heading into winter.

• The UK exemption buys Sofia time to execute its takeover strategy, but the limited duration raises questions about longer-term stability.

• Legal and geopolitical battles loom: the Kremlin may view the seizure as expropriation, while Bulgaria risks lawsuits or reputational blowback if the process is mishandled.