Bulgaria extends “Lukoil” derogation until 29 October, Energy Ministry says

The derogation for Lukoil companies in Bulgaria has been extended until 29 October, the Energy Ministry said.

The derogation for Lukoil-linked companies operating in Bulgaria has been extended until 29 October, the Ministry of Energy said on April 14.

The decision allows continued transactions involving Lukoil Neftochim Burgas, Lukoil Bulgaria, Lukoil Aviation Bulgaria and Lukoil Bulgaria Bunker.

Caretaker Energy Minister Traicho Traikov said the extension provides predictability and market stability by ensuring the continuation of financial and commercial operations involving the listed entities.

The decision comes at a time of severe global energy turbulence and will prevent potentially the most serious energy, economic and logistical crisis that Bulgaria and the region could experience in conditions of escalating instability in the Middle East and severely constrained oil supplies, the ministry added.

Without an extension beyond 29 April 2026, Bulgaria would face an immediate risk of serious disruptions in the fuel sector. These include a complete shutdown of the Burgas refinery, the blocking of more than 80% of strategic reserves stored within the infrastructure of “Lukoil”, and interruptions to supplies accounting for 75% of diesel, 57% of petrol, 89% of aviation fuel, and 78% of bunker fuel for the Bulgarian market.

The Ministry of Energy further adds that the absence of a derogation could lead to serious disruptions in the operation of international airports and risks to allied aviation in the Black Sea region, the closure of a significant proportion of petrol stations across the country, sharp upward pressure on prices, fuel shortages and potential social unrest, as well as an increased risk of technological incidents in the event of a sudden shutdown of the refinery, with possible environmental consequences for Burgas and the surrounding region.

Bulgaria emphasises that the activities of “Lukoil” companies in the country are carried out under enhanced state oversight, through a special commercial administrator with extended powers over operational and financial processes, the mandatory use of a state-controlled escrow account, daily and monthly reporting to Bulgarian, European and American institutions, and that this mechanism ensures full transparency, complete control and zero risk of circumvention of sanctions regimes, the Ministry of Energy further states.