EditBulgaria’s Lukoil takeover: vast powers for one man spark political firestorm
New legal powers for the special manager heighten tensions as Sofia prepares its next request for a U.S. waiver in April
Bulgaria will request a second U.S. derogation for Lukoil’s Bulgarian subsidiaries in April, Prime Minister Rosen Zhelyazkov said on Saturday, signalling that the country expects continued foreign scrutiny of its management of the Russian company’s assets.
“What the Bulgarian government calmly, professionally, quietly, without unnecessary emotions or political statements achieved was to convince the U.S. administration – whose sanctions have consequences far beyond Bulgarian territory, that we will be able to comply with the rules over the next six-month period. After six months, a new request is required for an extension of this derogation”, Zhelyazkov explained. He added that sanctions imposed by Europe on Russian assets are also reviewed every six months, meaning that April will again bring a formal request for renewal.
According to the prime minister, the government has “done its best for the refinery in Burgas”, insisting that no funds will be allowed to “flow in an undesirable direction”, while the facility continues operating without disruptions. Safeguarding jobs and ensuring market stability remain central concerns, he noted.
The statement followed a decision by the U.S. Treasury’s Office of Foreign Assets Control (OFAC), which on Friday issued a General Licence authorising transactions involving several Lukoil entities in Bulgaria for six months. The licence covers Lukoil Neftohim Burgas AD, Lukoil Bulgaria EOOD, Lukoil Aviation Bulgaria EOOD, Lukoil Bulgaria Bunker EOOD and any company in which these entities hold 50% or more, directly or indirectly. The authorisation remains valid until 00:01 Eastern Time on 29 April 2026.
However, OFAC explicitly clarified that the licence does not allow transactions prohibited under the Russian Harmful Foreign Activities Sanctions Regulations, including dealings with any blocked subsidiaries of Lukoil PJSC outside the entities named in the licence unless separately authorised.
The United Kingdom has issued a parallel special licence permitting companies and banks to continue working with Lukoil Bulgaria EOOD and Lukoil Neftohim Burgas AD until February. London’s move follows its sanctions last month on major Russian oil producers, including Lukoil and Rosneft, for financing Russia’s invasion of Ukraine.
A new layer of controversy: the state-appointed special manager
Amid the sanctions-driven uncertainty, the Bulgarian government appointed the head of the National Revenue Agency Rumen Spetsov, as special commercial manager of the four Lukoil companies operating in the country.
Economy Minister Petar Dilov defended the choice, stating that Spetsov “meets all legal requirements” and has repeatedly demonstrated professionalism, political impartiality and managerial skills in leading NRA under different governments. Dilov emphasised Spetsov’s experience in supervisory functions and the importance of his “trust among our international partners”.
Spetsov, who became head of NRA in 2021 under the four-party coalition government, has long attracted political controversy. His former company “Granex Trader” appeared on the tax agency’s list of major debtors with liabilities of 1.15 million leva (766, 937 euro). Although the chronology later clarified that Spetsov bought the company in 2015 and sold it to an insolvent individual in 2016, prosecutors opened an investigation into whether he acted knowing the results of an upcoming tax audit.
His appointment as NRA chief was strongly criticised by GERB, opposition at the time, though then-finance minister Assen Vassilev, leader of We Continue the Change defended him as “an exceptionally trusted partner of foreign services”. Now, however, Vassilev dismissed Spetsov’s nomination as special manager of Lukoil, arguing that “the candidate does not have the necessary experience to run a refinery”, calling the decision “a rather bad joke by the government”.
A further dispute emerged over whether Spetsov meets the legal requirement of having at least five years’ experience in managing activities related to oil and petroleum products. Aside from NRA’s oversight of Lukoil’s tax obligations, there is no indication that he possesses such expertise.
Expanded powers, accelerated legislation
On Friday when the State Gazette published urgent legislative amendments granting significantly broader powers to the special commercial manager. Beyond operational control, the manager can now execute disposal transactions involving Lukoil assets. Moreover, administrative acts, contracts and registrations linked to these decisions cannot be suspended or subjected to administrative or judicial review.
The speed with which the governing majority passed the amendments prompted sharp criticism. President Rumen Radev vetoed the bill, but parliament promptly overturned his veto.
Prominent human rights lawyer Mihail Ekimdzhiev told EUalive’s partner outlet “Sega” that the accelerated legislative process suggested a desire “to seize Lukoil, to appropriate its assets, and then make all Bulgarians pay when the Russian company wins arbitration cases”. He warned that the law contradicts not only the Constitution and the European Convention on Human Rights, but also “a number of other international legal acts”, and voiced suspicions that U.S.- and UK-sanctioned Delyan Peevski could ultimately gain control over Lukoil’s Bulgarian assets.
The same concerns are shared by the pro-European We Continue the Change – Democratic Bulgaria coalition, which is currently in opposition.
Caption: Rumen Spetsov/still image from TV footage
Updated: November 17, 2025 - 12:15
