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Bulgaria Moves to Protect Fuel Supplies as U.S. Sanctions Threaten Lukoil Refinery

Sofia explores a sanctions waiver to keep the Lukoil Burgas plant operating before the 21 November measures take effect.

Overview

  • Parliament approved temporary limits on diesel and aviation-fuel exports to other EU countries by a vote of 135–4, with 42 abstentions.
  • The measure allows case-by-case exemptions authorized by the head of the Customs Service, and military-related supplies are excluded from the curb.
  • The government has asked Washington how to request a delay or exemption from the new U.S. sanctions, according to Politico’s reporting from unnamed sources.
  • Officials fear banking cutoffs could force the Burgas refinery, which supplies up to about 80% of Bulgaria’s fuel, to halt operations and trigger shortages.
  • U.S. sanctions announced in late October target Lukoil and Rosneft across the oil supply chain, and Lukoil has since said it will sell international assets, including a planned sale of LUKOIL International GmbH to Gunvor.