NATO allies rush to shield Lukoil refinery as Trump sanctions loom – Politico
Lukoil oil refinery (Photo: Getty Images)
The governments of Bulgaria and Romania are working to prevent the shutdown of key oil refineries and disruptions in fuel supplies after US sanctions against Russian companies, imposed by President Donald Trump, take effect, reports Politico.
Bulgaria prepares to nationalize Lukoil
On November 7, the Bulgarian parliament passed a law granting the government the authority to appoint a head for the Lukoil refinery in Burgas, giving them the power to manage the facility, sell it, or even nationalize the asset. At the same time, Sofia is negotiating for an exemption from US sanctions.
Romania seeks a compromise
In Romania, home to the Lukoil Petrotel refinery, the government has yet to make an official decision. According to a senior official, Bucharest is considering postponing the sanctions and views potential nationalization as a last resort.
Energy Minister Bogdan-Gruia Ivan stated that Romania is prepared for any scenario and aims to maintain economic stability while reducing its funding to Russia.
Analysts note that a shutdown of the Ploiești refinery would likely lead only to a temporary rise in fuel prices, as the facility supplies about 20% of the domestic market. However, it could affect exports to Moldova, which, according to Expert Forum analyst Ana Otilia Nuțu, Russia could exploit in its propaganda.
Moldova wants to buy Lukoil’s assets
On November 7, the Moldovan government proposed purchasing Lukoil’s assets, including an aviation fuel depot, and appealed to the US to delay the implementation of sanctions.
Trouble finding buyers
Russian energy expert Mikhail Krutikhin believes the refineries could continue operating if a new owner keeps the staff and brings in specialists. However, the main challenge is finding an investor willing to take on the legal risks, insurance costs, and major capital investments.
Expert Ana Otilia Nuțu stresses that any sale of such assets must be carried out under EU supervision to prevent attempts to bypass sanctions against Russia.
New sanctions against Russia
On October 23, US President Donald Trump announced a new round of sanctions targeting Russia’s energy sector. The restrictions include Russian oil giants Lukoil and Rosneft, along with their subsidiaries.
That same day, the European Union officially approved its own new sanctions package against Russia. The measures aim to cut the Kremlin’s revenues and prevent the circumvention of sanctions through third countries.
