As the clock ticks down to November 21, 2025, Bulgaria and Romania find themselves in a race against time, scrambling to prevent the shutdown of their most critical oil refineries in the face of impending U.S. sanctions targeting Russian energy giants. The stakes are high: these refineries are not only vital to national fuel supplies but also serve as linchpins for both countries’ economic stability and energy security. The looming sanctions, directed at Russian oil companies Lukoil and Rosneft, have put the region’s leaders in a tight corner, forcing them to weigh emergency legislation, government intervention, and even the prospect of nationalization.
According to Politico, the U.S. decision to blacklist Lukoil and Rosneft—two of Russia’s largest oil companies—has sent shockwaves through the European Union, especially in countries where these firms own and operate major refineries. Bulgaria’s Lukoil-owned Burgas refinery and Romania’s Petrotel refinery, both integral to their respective energy networks, are now under threat of closure as the sanctions deadline approaches.
On November 7, the Bulgarian parliament moved swiftly, passing emergency legislation that allows the government to appoint a special administrator with sweeping powers over the Burgas refinery. The new law strips Lukoil’s shareholders of their voting and disposal rights, empowering the state-appointed manager to approve transactions, oversee operations, and, if necessary, sell shares in the refinery—without the need for shareholder consent. The Bulgarian News Agency reported that this marks Bulgaria’s second emergency response in just seven weeks to the refinery crisis triggered by U.S. measures. In October, Sofia had already suspended exports of refined petroleum products, including diesel, in an attempt to stabilize domestic supply.
Bulgarian Vice President Iliana Iotova did not mince words about the gravity of the situation. Calling for a broad national consensus that extends beyond mere parliamentary decision-making, she warned, “Bulgaria faces an extremely difficult situation if the country’s largest oil refinery stops operating.” Iotova also criticized the lightning-fast legislative process, noting that the amendments were pushed through “in a record 30 seconds.” She questioned whether such a significant move warranted more robust debate and public input.
Despite the drastic steps, Iotova pushed back against accusations that the government’s actions amounted to outright nationalization. Drawing a comparison to Germany’s handling of its own Russian-owned Schwedt refinery—under state management since 2022—she explained, “In Germany, this system has been in place for three years and will continue until 2026. This is neither a sale nor nationalization.” Her comments reflect a broader European trend: countries grappling with how to protect strategic energy assets without violating EU competition rules or triggering even greater instability.
The urgency is palpable. The Burgas refinery alone supplies up to 80% of Bulgaria’s fuel, making it the backbone of the country’s energy security and domestic fuel market. Any prolonged shutdown could lead to fuel shortages, price spikes, and knock-on effects throughout the economy—an outcome the government is desperate to avoid. As reported by UNN, Bulgaria is also considering requesting an exemption from the new U.S. sanctions, a move aimed at buying time while alternative solutions are explored.
Romania, meanwhile, is watching events unfold in Sofia with a wary eye. Lukoil’s Petrotel refinery, located in Ploiești, faces a similar threat. Although Bucharest has yet to make an official decision, officials are actively considering their options. A senior government source, speaking anonymously to Politico, revealed that nationalization remains a “last resort.” In the meantime, Romania is preparing to request a “sanctions extension” from Washington, hoping to secure a temporary reprieve that would keep the refinery running. Energy Minister Bogdan-Gruia Ivan told Politico that Romania is “ready” for any scenario, emphasizing that the government’s plan is to “maintain Romania’s economic activity, but at the same time to stop financing the Russian Federation.”
The situation has been further complicated by international developments. On November 6, Swiss trading house Gunvor abruptly withdrew its bid to purchase Lukoil’s international assets after the U.S. Treasury Department sharply criticized the proposed sale. This unexpected move has cast doubt on efforts to find new, non-Russian owners for the refineries—an outcome that many policymakers had hoped would offer a way out of the impasse.
Other European countries are also feeling the heat. Germany, for instance, secured a six-month exemption for its Rosneft-owned Schwedt refinery, which has been under government control since 2022. The German government’s approach—temporary state management of strategic assets—has become something of a model for other EU nations grappling with the fallout from sanctions. Meanwhile, Hungarian Prime Minister Viktor Orbán traveled to Washington on November 7, seeking an exemption for Russian oil imports via pipelines, not just for Hungary but also for neighboring Slovakia. These diplomatic maneuvers underscore the widespread anxiety across Europe as governments try to balance energy security with the imperative to cut financial ties to Moscow.
Back in Bulgaria, the debate over the refinery’s future has exposed deep divisions within the political establishment. While some lawmakers argue that decisive state intervention is necessary to protect national interests, others worry about the precedent set by stripping private shareholders of their rights. Critics point out that the rushed legislative process leaves little room for public scrutiny or legal challenge. Yet, with fuel supplies at risk and winter approaching, the government appears determined to press ahead, convinced that inaction would be even more damaging.
The U.S. Treasury Department and the European Commission have both declined to comment on the evolving situation in Bulgaria and Romania. This silence has left local officials to navigate a complex web of legal, economic, and geopolitical challenges on their own. The EU, for its part, has made clear in recent months that it intends to end its dependence on Russian energy—a goal that has taken on new urgency as the war in Ukraine drags on and diplomatic efforts to secure a ceasefire stall.
For ordinary Bulgarians and Romanians, the outcome of these high-stakes maneuvers will be felt at the gas pump, in household budgets, and across the broader economy. The Burgas and Petrotel refineries have long been pillars of national energy infrastructure; their fate now hangs in the balance as governments, lawmakers, and international partners scramble to find a way forward. One thing is certain: the coming weeks will test the resilience and resourcefulness of both countries as they navigate one of the most challenging energy crises in recent memory.
As November 21 approaches, the choices made in Sofia and Bucharest will shape not only the future of their own energy sectors but also the broader European response to the shifting geopolitics of oil and sanctions.
