Bulgaria’s Energy Minister Zhecho Stankov announced on Friday that the country is developing strategies to guarantee continuous oil and oil derivative supplies.
This comes after the US implemented sanctions against Russia’s Lukoil, which operates Bulgaria’s largest oil refinery.
Sanctions rattle market
In a decisive move responding to Russia’s ongoing war in Ukraine, US President Donald Trump enacted stringent sanctions targeting two of Russia’s most prominent oil giants: Lukoil and Rosneft.
This significant policy shift immediately reverberated across the European continent, where Lukoil, in particular, maintains an extensive and critical operational footprint.
Lukoil’s presence in Europe is multifaceted and deeply integrated into the region’s energy infrastructure.
The company operates a vast network of filling stations, serving as a key retail point for fuel consumers.
Beyond retail, Lukoil is also heavily involved in the logistics and processing aspects of the oil industry within Europe, including the transportation, storage, and refining of crude oil.
These sanctions, therefore, are designed to create substantial economic pressure on Russia by disrupting the operations and financial flows of these major energy entities, with considerable implications for Europe’s energy markets and supply chains.
Quantity guaranteed
Lukoil operates Bulgaria’s largest crude import business, including the 190,000 barrel-per-day Burgas oil refinery, over 200 petrol stations, and a comprehensive fuel transport and depot network.
“This is an extremely important situation in which we, with the interested parties, including our European partners…will have the opportunity…to build a common European action plan for the situation that has arisen,” Stankov said after a ministerial meeting including other state agencies, according to a Reuters report.
Bulgaria plans to monitor its national fuel stocks, he announced.
Bulgarian citizens should be calm, fuel is provided. Until the end of the year, the quantities are guaranteed.
Justice Minister Georgi Georgiev announced that the Burgas oil refinery and other Lukoil subsidiaries fulfil the criteria for US sanctions.
He added that the government is in discussions with US institutions to guarantee the refinery’s continued operation.
An amendment adopted by the Bulgarian parliament on Friday mandates that the cabinet and the country’s intelligence service must approve any sale of Lukoil’s assets in Bulgaria.
Due to existing sanctions against Russia over the Ukraine conflict, Lukoil was already under pressure.
Georgiev stated that the security services and the interior ministry have implemented additional measures to ensure the refinery’s capacity, manpower, and other security requirements.
Oil prices outlook
Oil prices have climbed sharply due to the latest US sanctions on Lukoil and Rosneft.
Meanwhile, in September, Russia’s gasoil exports decreased to 720,000 barrels per day, a reduction from the 800,000 barrels exported daily in August, as reported by the International Energy Agency.
Gasoil exports had peaked in September 2024, reaching 840,000 barrels per day. However, an export ban for resellers has been in effect since October 1.
The gasoil crack spread has expanded to $27 per barrel, indicating a tight market.
This, combined with the recent rise in the price of Brent, caused the price of gasoil to rise again to a good $700 per ton, Commerzbank AG analysts said.
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