Bulgaria could obtain a six-month delay in U.S. sanctions targeting Russian oil giant Lukoil, according to Boyko Borissov, leader of the ruling GERB party. The potential postponement comes amid growing concerns over fuel supply stability ahead of the winter season.

The U.S. Treasury’s Office of Foreign Assets Control (OFAC) announced last month sanctions on Russia’s two largest oil companies, Lukoil (LKOH.MM) and Rosneft (ROSN.MM), in an effort to pressure Russian President Vladimir Putin to end Moscow’s ongoing war in Ukraine. These sanctions have significant implications for the operations of Russian oil companies across Europe.

Background on the Sanctions

The sanctions, scheduled to take effect on November 21, 2025, restrict financial transactions with the sanctioned Russian firms. In Bulgaria, the sanctions primarily target the Burgas oil refinery, one of Lukoil’s key foreign assets, which also includes hundreds of petrol stations and storage facilities. The refinery plays a critical role in Bulgaria’s energy supply, making the sanctions a matter of national concern.

In response, Lukoil has filed for an extension of the U.S. Treasury deadline, according to multiple sources familiar with the matter. This extension would allow the company to continue operations while negotiations and regulatory adjustments are underway.

Bulgarian Government Measures

To mitigate the potential disruption from the sanctions, Bulgarian lawmakers approved recent legislative changes granting a government-appointed commercial manager authority to oversee the Burgas refinery. This manager is empowered to maintain refinery operations beyond the sanctions deadline and, if necessary, facilitate the sale of the company to ensure continued energy supply in Bulgaria.

Economic and Energy Implications

The postponement of U.S. sanctions is critical for Bulgaria, particularly as the country prepares for the high-demand winter period. Analysts have highlighted that any disruption in refinery operations could have ripple effects on fuel prices, transportation, and industrial energy costs across the country.

Borissov emphasized that a temporary delay would give Bulgaria “time to secure energy stability and protect consumers” while navigating the complex geopolitical pressures imposed by U.S. sanctions on Russian energy firms.

The situation also underscores the broader challenge facing European countries reliant on Russian energy imports, as governments attempt to balance sanctions compliance with domestic energy security.

Next Steps

Bulgarian authorities are expected to continue discussions with the U.S. Treasury and other international stakeholders to formalize the six-month postponement. Meanwhile, Lukoil and Rosneft are preparing contingency plans to ensure uninterrupted operations during the transitional period.