Lukoil's Bulgaria Refinery Faces Potential Russian Oil Ban Decision Thursday

The Bulgarian parliament is understood to be considering proposals Thursday to restrict its Lukoil Neftochim Burgas plant from processing Russian oil.

• The motion, if passed, is expected to come into effect from January 1 or from March 2, 2024 according to Tass reports.
• “The new rules, which may be approved by the Bulgarian parliament as early as this week, envisage ending all imports from March and cutting the exports of some refinery products.” Bloomberg reported earlier this week.
• Lukoil issued a statement December 5 saying they are reviewing the strategy of assets in Bulgaria and that the sale of them was not ruled out driven by pressure to ban Russian oil.
• It is not clear at present who would be a potential buyer or where they would source crude supplies.
• The government in Sofia already put an end to Lukoil’s lease of the refinery port in July according to Bloomberg.
• Bulgaria is exempt from European Union rules banning the imports of Russian oil as a sanction over Kremlin’s war in Ukraine – valid until September 2024, brought forward by 3-months.
• The refinery is the biggest in Bulgaria and is crucial for domestic fuel supply putting pressure on the Bulgarian government to keep it running.