In a move that’s sent ripples through the European energy sector, Bulgarian authorities have begun a sweeping security operation at Lukoil’s Burgas oil refinery, the country’s largest fuel producer, as they prepare to seize control of the facility ahead of looming U.S. sanctions on Russian-owned oil businesses. The government, led by Prime Minister Rosen Zhelyazkov, initiated the process on November 10, 2025, after passing new laws that allow the state to appoint a special manager, take over the refinery, and potentially sell it—all with the goal of safeguarding Bulgaria’s vital energy infrastructure from international legal fallout.
At the heart of this high-stakes drama is the Burgas refinery, which supplies around 80 percent of Bulgaria’s fuel. Officials fear that if the site remains under Russian ownership as U.S. sanctions kick in on November 21, it could be forced to shut down or severely curtail operations. Such a scenario would almost certainly lead to fuel shortages, price spikes, and broader economic headaches for the country. As a result, the government has opted for a preemptive takeover, describing the move as a necessary—and urgent—step to protect national interests and keep the lights on for millions of Bulgarians.
"Security measures include inspections, readiness of military police, deployment of an anti-drone system, and vehicle checks at the refinery area," the Council of Ministers announced, according to Reuters. The operation is extensive: the State Security Agency, Ministry of Internal Affairs, and Ministry of Defence are all involved, working together to ensure the refinery and its linked facilities remain fully secure and operational. Military police brigades have been placed on standby, and a sophisticated anti-drone system has been deployed in the Burgas area to detect and neutralize any unauthorized aerial activity.
Officials have emphasized that these measures are precautionary, not a response to a specific threat. “The increased security is intended to ensure that the refinery, along with linked facilities, remains fully secure and functional,” authorities told Reuters. Vehicles entering the site are being rigorously inspected for dangerous objects or explosives, and security teams are checking compliance with detailed protection plans. The message from Sofia is clear: the handover is a high-security process, and the government is determined to prevent any possible threat or disruption.
The legal foundation for this takeover was laid just days before the operation began. Bulgaria’s parliament passed legislative changes that empower the government to take control of the refinery and, if necessary, sell it to a new owner—without Lukoil having the right to contest the decision. The law also allows for the appointment of a special manager to oversee the transition and sale. According to Politico, Sofia is actively seeking a temporary exemption from U.S. sanctions against Lukoil and Rosneft, hoping to buy time to secure new ownership or alternative arrangements.
This is not just a Bulgarian problem. Romania is facing a similar challenge with its Petrotel refinery in Ploiești, also linked to Russian ownership. Energy Minister Bogdan-Gruia Ivan told Politico that Bucharest is preparing to protect national fuel supplies while ending financial ties to Moscow, though nationalization remains a “last resort.” Romania’s Petrotel supplies about 20 percent of domestic demand, and a shutdown could disrupt fuel exports to Moldova and trigger short-term price hikes. Meanwhile, Germany has already secured a six-month waiver for its Rosneft-controlled Schwedt refinery, and Hungary’s Prime Minister Viktor Orban is lobbying Washington for a similar exemption for Russian pipeline oil imports.
Back in Bulgaria, the urgency is heightened by the recent collapse of a potential deal that might have eased the transition. Swiss-based oil trader Gunvor withdrew its bid to purchase Lukoil’s international assets after the U.S. Treasury warned it would not grant a license for the transaction, branding Gunvor a "Kremlin puppet." This setback leaves Bulgaria scrambling to find a buyer willing to navigate the treacherous waters of sanctions and high costs.
Analysts interviewed by Politico say that both the Burgas and Petrotel refineries could continue operating safely if new ownership is secured. However, finding buyers who can steer clear of sanctions complications and shoulder the financial burden won’t be easy. The stakes are particularly high for Bulgaria, given its heavy reliance on the Burgas plant for fuel. Any hiccup in the transition could have cascading effects on the country’s energy security and economy.
The government’s bold move has not gone unnoticed—or unchallenged—by Moscow. Russia’s Ambassador to Bulgaria, Eleonora Mitrofanova, sharply criticized the takeover as “hasty and legally dubious,” warning that it sets a “dangerous precedent.” Russian officials have suggested that the new law resembles expropriation and cautioned that Bulgaria is taking a risky path that could have repercussions beyond its borders. “These actions set a troubling precedent,” Mitrofanova said, according to Devdiscourse, echoing Moscow’s broader concerns about Western governments seizing Russian assets in response to geopolitical tensions.
Critics within Bulgaria have also raised concerns. Ivaylo Mirchev, an opposition MP for Democratic Bulgaria, warned that a hasty state takeover could invite costly arbitration claims from Lukoil. Ana Otilia Nuțu, an energy analyst at the Expert Forum think tank, pointed out that such moves could complicate coordination with the European Union, which has urged member states to align any refinery sales with broader sanctions policy. The EU’s stance adds yet another layer of complexity to an already tangled situation.
Despite these criticisms, the Bulgarian government insists that the takeover is both legal and necessary. Prime Minister Zhelyazkov has described the process as “proactive,” emphasizing that the goal is to prevent operational disruptions and protect the country’s energy security. “Bulgaria remains firm in its objective to protect national interests by preventing disruptions at the refinery,” he said, as reported by Devdiscourse. Officials have reiterated that the security measures are strictly precautionary, designed to avoid potential problems rather than respond to any immediate threat.
As the November 21 sanctions deadline approaches, all eyes are on Sofia to see how this unprecedented takeover unfolds. The outcome will not only determine Bulgaria’s immediate energy future but could also set the tone for how other European countries navigate the fraught intersection of sanctions, energy security, and national sovereignty. For now, the refinery’s fate—and by extension, the country’s fuel supply—hangs in the balance, watched closely by neighbors, allies, and rivals alike.
With the world’s gaze fixed on Burgas, Bulgaria’s gamble may well become a defining moment in the ongoing struggle to balance energy needs with geopolitical realities.
