site.btaUPDATED Lukoil Group's Litasco Claims Its Bulgarian Investments Expropriated Unlawfully

Litasco SA, a Geneva-based member of the Lukoil Group and the immediate shareholder of Lukoil Neftohim Burgas AD and Lukoil Bulgaria EOOD, claims that the imposition of external management over these two and other businesses of Lukoil in Bulgaria, subsequent actions undertaken by such management, as well as other actions of the Republic of Bulgaria that preceded or postdated the imposition of external management (including termination of the concession with respect to the Rosenets Port terminal), have materially affected Litasco SA's investments in its Bulgarian subsidiaries and have resulted in significant losses to the Group.

In a statement published on its website on Wednesday, Litasco SA recalls that on November 14, 2025, the National Assembly of the Republic of Bulgaria adopted legislation introducing external management over Lukoil Neftohim Burgas AD, Lukoil Bulgaria EOOD, and other entities of the Lukoil Group operating in Bulgaria. Pursuant to this legislation, the affected companies' management was transferred to the special commercial manager (a.k.a. special commercial administrator) as of November 17, 2025.

In order to protect its rights and legitimate interests, on February 19, 2026, Litasco SA submitted notice of dispute(s) to the Republic of Bulgaria, the statement says. The notice was filed pursuant to the Agreement between the Swiss Confederation and the Republic of Bulgaria on the Promotion and Mutual Protection of Investments (including its Protocol) and the Energy Charter Treaty.

Litasco SA considers that the measures adopted by the Republic of Bulgaria constitute breaches of Bulgaria's obligations under the applicable bilateral investment treaty and the Energy Charter Treaty. Specifically, those measures amount to unlawful expropriation of Litasco SA's investments without compensation. In the absence of an amicable resolution, Litasco SA intends to pursue all available legal remedies, including initiation of arbitration proceedings in the International Centre for Settlement of Investment Disputes. Litasco SA and other entities of the Lukoil Group reserve all rights and remedies, the statement says.

Days after the new Bulgarian legislation was adopted in November 2025, Lukoil said it "reserves the right to seek judicial remedies to protect its rights and legitimate interests in the event of their violation."

The then prime minister, Rosen Zhelyazkov, explained the appointment of the special commercial administrator for Lukoil in Bulgaria with the fact that the Neftohim oil refinery in Burgas is part of the country's critical infrastructure and the State has obligations to safeguard its uninterrupted operation. He stressed that the aim was for the refinery to continue functioning smoothly after November 21.

On October 22, 2025, the United States imposed sanctions on Rosneft and Lukoil, the two largest Russian oil companies. Similar sanctions were imposed the same day by the United Kingdom.