Romania and Bulgaria try to protect Russian oil refineries from Trump's sanctions - Politico
Kyiv • UNN
Romania and Bulgaria are trying to prevent the shutdown of their critical oil refineries as US sanctions against their Russian owners take effect on November 21. Bulgaria is considering nationalizing Lukoil's refinery in Burgas, while Romania views nationalization as a "last resort" for the Petrotel refinery.
Romania and Bulgaria are racing against time to prevent their critical oil refineries from shutting down before United States sanctions against their Russian owners take effect later this month. This was reported by Politico, writes UNN.
Details
Washington's decision to blacklist Lukoil and Rosneft has put EU countries where the two largest Russian oil companies are present in a difficult position as they try to prevent fuel supply disruptions before the sanctions take effect on November 21.
On Friday, Bulgarian lawmakers approved a new bill that will allow the government to appoint a manager for the huge Lukoil-owned refinery in Burgas, giving it broad powers to operationally control the facility, approve its sale, and nationalize it if necessary. Meanwhile, the country is exploring the issue of exemption from sanctions.
Romania, where Lukoil's Petrotel refinery is located, has not yet made an official decision. But Bucharest is also considering requesting a "sanctions extension" while preparing its own response, a senior government official authorized to speak anonymously said. They added that nationalization is considered a "last resort."
Nevertheless, Romanian Energy Minister Bogdan-Gruia Ivan told POLITICO that Bucharest is "ready" for any scenario operationally. He added that the government's plan aims to maintain "Romania's economic activity, but at the same time to stop financing the Russian Federation."
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The US Treasury Department, which must approve any sale, and the European Commission declined to comment.
Efforts to secure new owners for the refineries were further called into question after Swiss trading house Gunvor on Thursday withdrew its bid to buy Lukoil's international assets following sharp criticism of the sale proposal from the US Treasury Department.
The new measures also affect other EU countries. Germany received a six-month exemption for its Rosneft-owned Schwedt refinery, which has been under government control since 2022. Hungarian Prime Minister Viktor Orbán visited Washington on Friday hoping to secure an exemption from Russian oil imports via pipelines for his country and neighboring Slovakia.
The sanctions come amid growing frustration from President Donald Trump over stalled efforts to secure a ceasefire in Ukraine. The EU has also in recent months stepped up its campaign to end the bloc's dependence on Moscow for energy.
Recall
As reported by UNN, Bulgaria is considering requesting an exemption from new US sanctions against Russian oil company Lukoil due to fears of fuel shortages. The sanctions could lead to the shutdown of the Burgas refinery, which supplies up to 80% of the country's fuel.