EditU.S. grants sanctions waiver to keep Lukoil’s largest Balkan refinery running
The development comes as numerous U.S. military tanker aircrafts are currently stationed at Sofia airport for refuelling operations, relying on Bulgarian jet fuel
Washington has granted a waiver to its sanctions regime, allowing four Bulgarian subsidiaries of Russia’s Lukoil to continue operating just two weeks before a deadline that would have effectively forced them to shut down.
The extension, now valid until October, ensures the continued operation of the largest refinery in the Balkans, located in the Bulgarian Black Sea city of Burgas. Caretaker Prime Minister Andrey Gurov said the waiver was secured following a conversation on Friday with US Secretary of State Marco Rubio.
The previous licence had been due to expire on 29 April 2026. The new extension allows the Burgas refinery to operate without disruption, securing fuel supplies both for Bulgaria and the wider region. It also guarantees the continued activity of Lukoil’s petrol station network, as well as companies supplying aviation and marine fuels.
The development comes as numerous U.S. military tanker aircrafts are currently stationed at Sofia airport for refuelling operations, relying on Bulgarian infrastructure. The Burgas refinery is the largest producer of aviation fuel in the region. According to reports, Europe’s airports are staring down a potential systemic shortage of jet fuel that could disrupt the peak summer travel season.
Jet fuel shortage looms as U.S.-Iran talks collapse and Hormuz remains blocked
“From now on, the refinery can operate normally. The role of the special administrator is to ensure supplies so that capacity is fully utilised and there are no fuel shortages at petrol stations,” Gurov said.
Washington has already granted several such waivers for Lukoil’s overseas subsidiaries, aiming to provide time for the Russian company’s foreign assets to be sold. A package deal covering multiple assets remains possible, although individual sales are also under consideration.
To prevent any financial flows towards Russia, the Bulgarian government has taken control of the refinery from Russian management and appointed a state administrator.
In the Balkans, Lukoil operates big refineries in Bulgaria and Romania. The Burgas facility is the largest in Southeastern Europe, with an annual processing capacity exceeding 7 million tonnes of crude oil. In comparison, Lukoil’s Romanian refinery, Petrotel in Ploiești, has a capacity of around 2.4 million tonnes and employs fewer than 500 workers.
The company also runs an extensive retail network, with approximately 320 petrol stations in Romania and 226 in Bulgaria. Once sanctions are fully enforced, banking services for these operations could face disruption.
If implemented in full, U.S. sanctions risk triggering a “perfect energy storm” in the region. Similar measures were previously imposed on Serbia’s NIS refinery, owned by Gazprom, which processes 4.6 million tonnes of crude annually, but later lifted. A simultaneous shutdown of refineries with a combined capacity of around 14 million tonnes would be extremely difficult to offset.
At present, Lukoil’s refinery in Ploiești is undergoing major maintenance and is fully shut down, according to the company. Three days after the shutdown, an explosion occurred, injuring a worker.
Bulgaria has petrol reserves for 90 days
Caretaker Energy Minister Traycho Traykov told journalists that rising petrol and diesel prices have not affected consumption levels in Bulgaria, which remain stable. He added that retail margins are monitored by the state and have narrowed significantly with diesel mark-ups roughly halving compared to the start of the crisis.
Pump prices in Bulgaria have increased, but are lower than in most European countries. A95 petrol is around 1.48–1.50 euros per liter and diesel reaches 1.78–1.79 euros per liter.
“Traders and supply chain participants are absorbing part of the price increase. As consumption remains unchanged while prices are higher, this has not translated into increased revenues for them,” Traykov said.
For now, Bulgaria remains relatively insulated from disruptions in fuel supply. However, in the event of shortages, the country could rely on its mandatory 90-day strategic reserves.
“These reserves should not be used to lower prices by a cent or two, but preserved as a buffer in case of a physical shortage,” Traykov stressed.
The government in Sofia has also requested approval from the European Commission to launch a state aid scheme supporting the country’s most energy-intensive industries.
Caption: U.S. refueling aircraft stationed at Sofia airport [BTA]
Updated: April 15, 2026 - 05:46
