site.btaUPDATED President Vetoes Legislative Amendments concerning Future Special Administrator for Lukoil's Assets in Bulgaria

President Rumen Radev has imposed a veto on amendments to the Act on Administrative Regulation of Economic Activities Associated with Oil and Petroleum Products, which expand the powers of a future special administrator who will oversee the Bulgarian assets of Lukoil, the head of State's Press Secretariat said. 

On November 7, Parliament adopted the amendments - expanding the powers of the figure of the special commercial administrator of a critical infrastructure facility - by approving them in two readings during a single sitting.

The President argued that the changes to the law would undermine the rule of law in the country, contradict key European regulations, and pose a high risk to public finances.  

"The institution of the special commercial administrator is regulated by a law adopted in 2023, which also provides for guarantees against possible abuses and arbitrariness, adopted in other European countries in a similar situation, in order to minimize the risk of future financial claims against the State," the President wrote in his reasoning. "With the legislative amendments of November 7, these guarantees have been removed without any justification," the head of State said.

He noted that the revised law grants the special administrator the right to dispose of the assets of the affected companies without restrictions and to sell their property. Contracts concluded by the administrator, as well as acts of state authorities under the law’s chapter concerning the administrator’s appointment, are now placed beyond administrative and judicial oversight, the President said.

The head of State noted that "the scope of the law has been unreasonably and dangerously broadened." Following the amendments, an administrator could be appointed to any number of enterprises outside the country’s critical infrastructure. "Viewed as a whole, these changes effectively allow for the indirect nationalization of the assets of affected enterprises and their possible transfer to an undefined circle of third parties," Radev added.

He argued that such provisions open the door to arbitrariness and abuse. "Fundamental constitutional principles such as the right to legal defense, judicial oversight of administrative actions, the inviolability of private property, free enterprise, and the protection of investments - which safeguards the economic activities of both Bulgarian and foreign citizens and legal entities - are being violated. The law also introduces provisions contrary to established international and European regulations," the President added.

"The legislative changes undermine the rule of law, damage the country’s reputation, and worsen the investment climate. They also pose a high risk to public finances, as significant financial compensation claims may be brought against the State," Radev noted. 

Earlier in the day, Energy Minister Zhecho Stankov said that the figure of the special administrator was first introduced during the Denkov government to ensure the refinery’s continued operation when its management blocked the processing of non-Russian oil. "Now we are in a fundamentally different situation," he said. "The special commercial administrator proposed by the National Assembly, provides the state the opportunity for 24/7 monitoring, which would prevent funds from subsidiaries from being directed to the sanctioned companies," Stankov added. The Minister noted that four companies in Bulgaria will be affected by the US sanctions.

Also on Wednesday, GERB leader Boyko Borissov said that a Bulgarian national has already been proposed for the position of special administrator for Lukoil, but the name would be announced once it becomes clear whether the President will veto the legislative amendments.

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. The Lukoil assets in Bulgaria include Lukoil-Bulgaria EOOD (a chain of over 200 filling stations), Lukoil Neftochim Burgas AD (the largest oil refinery in the Balkans), Lukoil Aviation Bulgaria EOOD (an aircraft refuelling operation), and Sustainable Energy Supply EOOD (marketing and trading in natural gas and other hydrocarbons). Lukoil owns Lukoil Neftochim Burgas 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.