site.btaOfficials Assure Fuel Supply Stability amid Lukoil Sanctions Concerns

Bulgarian officials sought to reassure the public on Tuesday that the country has sufficient fuel reserves and that national security will not be jeopardized by upcoming U.S. sanctions on the Russian company Lukoil, even as opposition figures raised concerns about gaps in the nation’s strategic fuel stocks.

Energy Minister Zhecho Stankov said Bulgaria’s fuel quantities are “sufficient to supply citizens and businesses for a long period of time,” stressing that “security of supply at affordable prices is guaranteed.” He said the government is maintaining continuous communication with the U.S. Office of Foreign Assets Control (OFAC) to ensure the Lukoil refinery in Burgas can continue operating after the November 21 sanctions deadline. Stankov expressed confidence that “Plan A” will work, and a contingency plan will not be needed.

Earlier the same day, Asen Asenov, Chair of the State Agency State Reserve and Wartime Stocks, told bTV that Bulgaria currently holds about 98% of the legally required 90-day fuel reserves. He said the country has petrol reserves for roughly 35 days and diesel reserves for more than 50 days, with about half of the total stored domestically and the rest abroad — including in Italy, the Netherlands, Hungary, Slovakia, Greece, and Romania — which could be transported to Bulgaria within 7 to 45 days if needed.

Asenov confirmed that three companies, including Insa Oil and two smaller companies, have failed to meet their legal storage obligations, citing lack of capacity. The missing quantities amount to around five days of the mandatory reserves. He noted that although the agency wins court cases against these companies, current legislation imposes no financial penalties.

The agency’s chief also said that 80% of private companies’ required reserves are maintained by Lukoil, but assured that “the state will ensure the necessary reserves regardless of circumstances.” He added that inspection firms conduct monthly checks of both the quantity and quality of stored fuels.

Despite the reassurances, Yes, Bulgaria Co-Chair and Continue the Change–Democratic Bulgaria (CC–DB) MP Ivaylo Mirchev warned that Bulgaria’s 90-day reserves are “not truly 90 days’ worth,” and called for the government to “urgently request the country’s fuel reserves stored abroad.” Mirchev accused companies linked to MRF–New Beginning leader Delyan Peevski of circumventing their legal obligations with the backing of institutional and judicial protection.

He cautioned that part of the reserves are in Lukoil facilities or in the form of crude oil awaiting processing. “If on November 21 the refinery stops due to the U.S. sanctions, part of the 90-day reserves will also be blocked,” Mirchev said, adding that the main risk lies not in fuel shortages but in the state’s inability to pay Lukoil once the sanctions take effect.

In Parliament, GERB–UDF Deputy Floor Leader Kostadin Angelov said the government’s recent legislative measures expanding the powers of the special commercial administrator for Lukoil are designed to “protect the interests of Bulgarian citizens and ensure national security.” He urged President Rumen Radev to swiftly promulgate the bill, warning that a veto “would mean defending corporate, not national, interests.”

Within a week, lawmakers have twice adopted emergency legislation to address the effects of the Lukoil sanctions — first banning exports and intra-EU deliveries of petroleum products such as diesel, and later granting new oversight powers over the company’s Bulgarian assets.

As the November 21 deadline approaches, the government insists that the situation is under control, while opposition leaders continue to press for full transparency and domestic control over Bulgaria’s fuel reserves. 

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.