site.btaUPDATED Ruling Parties Table Bill Expanding Powers of Special Administrator in Lukoil Bulgaria, Energy Committee Approves Amendments at First Reading

On Friday morning, the ruling coalition tabled in Parliament a bill amending the Act on Administrative Regulation of Economic Activities Associated with Oil and Petroleum Products, introducing provisions concerning the role of a special commercial administrator in Lukoil Bulgaria. The proposal was tabled by MPs from the MRF – New Beginning, GERB–UDF, There Is Such a People, and BSP – United Left parliamentary groups, according to information published on the National Assembly’s website.

Later on Friday morning, the National Assembly’s Committee on Energy approved the amendments at first reading with 12 votes in favour, none against, and no abstentions.

In their reasoning, the sponsors of the bill said that sanctions imposed on the assets of Lukoil would effectively lead to the suspension of operations at the Lukoil Neftochim refinery in Burgas, as all contractors had refused to make payments to companies owned by Lukoil OAO in Bulgaria. The situation, they argued, objectively required an expansion of the powers of the special commercial administrator, since the current circumstances differed significantly from those envisaged when the position was first introduced under the existing law.

If adopted, the draft amendments would allow the special commercial administrator to continue all operations of the refinery and other Lukoil facilities in Bulgaria beyond November 21, 2025, the proposal said.

The bill’s sponsors further said that the so-called German model, which has already been granted an exemption from the sanctions regime, had been effectively incorporated into the current legislative proposal.

According to the proposed amendments, individual administrative acts issued by the Economy and Industry Minister would be subject to appeal under the Administrative Procedure Code, except in cases where specific exceptions are provided.

The sponsors propose repealing the provision that limits the term of the special commercial administrator to six months, which may currently be extended once for the same period. They also suggest removing the text allowing the administrator’s powers to be exercised by more than one person, but not more than three.

Additional eligibility requirements for the appointment of a special commercial administrator are also introduced. The person must not be a spouse or relative (up to the sixth degree of consanguinity or the third degree of affinity) of any individual involved in the management or supervisory body of an entity operating critical infrastructure, or of any person engaged in the storage, transport, or wholesale and retail trade of oil and petroleum products. The nominee must also not maintain relationships that could raise reasonable doubts about their impartiality with any of the aforementioned parties.

The draft further provides that, from the date of appointment of the special commercial administrator by the Council of Ministers, the shareholders, partners, and sole owner of the capital of the entity operating critical infrastructure or engaged in oil-related activities, shall be deprived of their voting rights and rights as sole owner of the capital, and shall not be allowed to dispose of their shares or stakes in the company’s capital.

Background

On October 22, 2025, the US Department of the Treasury's Office of Foreign Assets Control (OFAC) expanded its sanctions on Russia by designating that country's two largest oil companies, Rosneft and Lukoil, under Executive Order 14024. The idea is to step up economic pressure on Russia's energy sector, which is a critical source of revenue for the Kremlin's military operations in Ukraine.

In Bulgaria, Lukoil owns Lukoil Neftochim Burgas, the largest oil refinery in the Balkans, through its Swiss-registered subsidiary LITASCO, which holds a 89.97% stake in the facility. Another 9.88% of the refinery belong to another Lukoil affiliate, Lukoil Oil Company. The remaining 0.15% of the capital is distributed among over 7,700 individual and corporate shareholders.

Lukoil also owns Lukoil Bulgaria, a leading Bulgarian motor fuel retail company, via LITASCO.

According to the Commission for Protection of Competition, Lukoil Bulgaria has a relatively large market share in this country and is a market leader in the wholesale of automotive fuel, with a share fluctuating between 40-50% and 50-60%.

It is Lukoil's 89.97% shareholding via LITASCO that places these key Bulgarian energy assets directly within the scope of the sanctions. The sanctions are expected to affect its ability to operate normally within the global financial system, potentially limiting its access to international banking services and supply chains that rely on US dollars or entities.

This has raised concerns in Bulgaria regarding the security of fuel supply and economic impacts, prompting the government to explore legal and administrative options to ensure the refinery's continued operation and mitigate disruptions of the country's energy infrastructure.

There have also been calls for re-nationalization of the oil refinery, which was privatized by stages between 1997 and 2009.