EditBulgaria moves to shield Lukoil co-owner from EU sanctions
The Russian oil major has launched a €3 billion compensation claim against Bulgaria after the state took control of the company’s local operations
Bulgaria will oppose any attempt to impose EU sanctions on Vagit Alekperov, co-owner of Russian oil giant Lukoil, Prime Minister Rumen Radev told journalists in Brussels.
The Bulgarian government is also blocking sanctions against Russian Orthodox Patriarch Kirill, a close ally of Russian President Vladimir Putin.
“Among the individuals proposed for sanctions is Vagit Alekperov, listed as a co-owner of Lukoil. He is the person who invested significant effort and resources to help build one of the most modern refineries in Europe. Given that Lukoil has filed a €3 billion arbitration claim against Bulgaria, we will not allow sanctions to be imposed on Vagit Alekperov. That would amount to shooting ourselves in the foot,” Radev said.
The Russian oil major has launched a €3 billion compensation claim against Bulgaria after the state took control of the company’s local operations. Lukoil argues that the dispute stems from government intervention following the appointment of a special administrator to oversee its Bulgarian business.
The meeting of EU leaders took place without Hungarian Prime Minister Viktor Orbán, who recently lost the election in Hungary and had previously blocked parts of the EU’s sanctions against Russia and reportedly sheltered Russian oligarchs. Recent developments suggest that Radev may now be assuming a similar role within the bloc.
Bulgarian PM Radev emerges as EU summit’s new vocal dissenter on Russia sanctions
The Bulgarian government has already halted direct military assistance to Kyiv and declined to support the creation of a special tribunal to prosecute Putin for the crime of aggression against Ukraine.
At the same time, the future of Lukoil’s international assets, including those in Bulgaria, remains heavily dependent on the implementation of U.S. sanctions.
At the end of May, the U.S. government once again extended a licence allowing companies to negotiate the purchase of Lukoil’s foreign assets. The new deadline is 27 June. Washington has already extended the deadline around six times since imposing sanctions in October last year on Lukoil and Russian state-controlled oil company Rosneft because of the role their revenues play in supporting Russia’s war effort in Ukraine.
The sanctions effectively forced the sale of Lukoil’s international portfolio, valued at approximately $22 billion and including oilfields, refineries and petrol station networks stretching from Iraq to Finland. The process has attracted interest from more than a dozen potential buyers, ranging from U.S. energy giant ExxonMobil to the former owner of Pornhub.
Any transaction must ensure that Lukoil receives no upfront payment, with all proceeds deposited into a frozen account under US jurisdiction.
Lukoil Neftochim Burgas, Bulgaria’s only refinery, is no longer processing Russian crude oil and reported a financial loss of nearly €200 million in 2025.
Meanwhile, Bulgarian authorities maintain that Lukoil’s arbitration claim seeks €3 billion in compensation over the appointment of a state administrator to oversee the company’s operations in the country.
As early as February, Swiss-based Litasco, the intermediary owner of Lukoil’s Bulgarian assets, announced that it had requested an “amicable settlement” with the authorities in Sofia regarding its claim against the appointment of a special administrator to the Lukoil Bulgaria group.
The company argues that the introduction of external management, together with other measures taken by the Bulgarian state, has substantially affected Litasco’s investments in its Bulgarian subsidiaries and resulted in significant losses for the group.
Bulgaria opposes EU sanctions targeting the Russian Patriarch and Lukoil
Litasco, which is the direct shareholder of both Lukoil Neftochim Burgas and Lukoil Bulgaria, bases its claims on the bilateral agreement between Switzerland and Bulgaria on the promotion and reciprocal protection of investments, including its protocol, as well as on the Energy Charter Treaty.
According to Litasco, the appointment of a special administrator to Lukoil’s Bulgarian companies breaches both legal instruments.
“More specifically, these measures constitute an unlawful expropriation of Litasco’s investments without compensation,” the company said.
Litasco has warned that, should no amicable settlement be reached, it intends to pursue all available legal remedies, including arbitration proceedings before the International Centre for Settlement of Investment Disputes (ICSID). The company added that it reserves all rights and remedies concerning its investment in Bulgaria.
The Bulgarian government appointed a special administrator to oversee Lukoil’s business in the country following the introduction of US sanctions, seeking to secure a derogation that would allow the Burgas refinery to continue operating.
Lukoil seeks €3bn in compensations from Bulgaria over the state control of its business
Caption: Vagit Alekperov (C), President, Member of the Board of Directors and Chairman of the Management Committee, LUKOIL and The Deputy Prime Minister of Russia Alexander Novak (R) wait before the main session of the St. Petersburg International Economic Forum (SPIEF) in St. Petersburg, Russia, 5 June 2026. The 29th St.Petersburg International Economic Forum runs from 3 to 6 June 2026. EPA/ANATOLY MALTSEV
Updated: June 19, 2026 - 18:09
