Bulgaria, home to Lukoil refinery, asks for exemption from Trump sanctions – Politico

Bulgaria is considering applying for an exemption from the of new US sanctions against the Russian oil giant Lukoil, reported Politico, citing two informed sources.

Bulgaria has a large Lukoil refinery in Burgas, which provides up to 80% of the country's fuel. The company has historically had a huge economic impact on Bulgaria, and the company has been linked to the use of loopholes in European Union sanctions.

The government has now asked Washington how it should proceed to ask for a delay in sanctions after November 21, when they will take effect, the interlocutors said.

According to them, the Bulgarian government is concerned that the sanctions could force Lukoil's refineries to shut down as banks refuse to work with it, leading to large-scale fuel shortages and protests.

Sofia argues that this could hasten the fall of the government by bolstering support for the country's pro-Russian president Rumen Radev, who publicly expressed the idea of creating a new political party, the interlocutors added.

Bulgaria is a parliamentary republic where the government has most of the powers, not the president.

At the same time, the Bulgarian Ministry of Energy declined to comment, and the head of state did not answer Politico's questions.

Julian Popov, former minister of Environmental Protection of Bulgaria and senior fellow at Strategic Perspectives, agreed that the government is "not properly prepared" and has "no contingency plan" in case of Lukoil's withdrawal, which could lead to fuel shortages if no solution is found.

The former official said that the government should now move to operational control of the refinery, with the support of an "international committee" of global lawyers and experts who can help Bulgaria manage this strategic facility.

However, experts questioned the claim that if the United States does not release the country from sanctions, Radev will come to power.

This is a "scare tactic" by the government to avoid quick action to sell the plant, said Ilian Vasilev, a former Bulgarian ambassador to Russia who now heads the consulting company Innovative Energy Solutions.

"There are legitimate interests and serious interests in buying Lukoil assets," the analyst said, adding that "no need to panic."

• Meanwhile, the German branch of Rosneft was dismissed from U.S. sanctions, as it is externally managed by a non-German company of the Russian Federation. According to Reuters, the country is considering nationalization of the company.
• The US president says that pro-Russian Hungarian PM Orbán asked for an exemption from sanctions against Rosneft and Lukoil, but Washington refused to do so.