Burgas

Bulgaria and Romania Move to ​Seize Lukoil ⁣Assets as Iraq Halts Payments amid Sanctions

SOFIA, bulgaria/BUCHAREST,​ Romania – In a ​significant blow​ to Russia’s energy ‍revenue stream, both ‍Bulgaria and Romania are⁢ taking steps to ​seize control of Lukoil’s assets ⁣within‌ their borders, following a decision by Iraq to ⁤halt all ⁢cash and⁤ crude oil payments to the Russian oil giant due to international sanctions.The moves threaten the operation of key refineries and fuel distribution networks ​across the Balkans and beyond.

According to reports citing‍ unnamed sources, Iraq has canceled planned payments for approximately 4 million barrels of crude oil to Lukoil. an Iraqi oil ministry official stated that payments will remain frozen untill a contractual adjustment is made to establish a mechanism for oil field development and payments to non-sanctioned companies.

The ‍most immediate ⁤impact is felt in Bulgaria, where the government is moving to take control of the‍ Neftochim refinery in ​Burgas,⁣ the largest in the Balkans and Bulgaria’s largest company overall.Lukoil holds ⁣a‌ 99.85% stake in the refinery. The‌ Bulgarian government aims to prevent ‍the refinery’s closure, given its‌ quasi-monopoly position thru its​ associated network of oil depots, gas stations, and fuel ⁣suppliers for ships and aircraft.

romania is following suit, with Energy Minister Bogdan‍ Ivan announcing the country must also take control of Lukoil’s romanian ⁢subsidiary. While details are still emerging, the move impacts Lukoil’s 320 gas stations, the country’s third-largest refinery, and ongoing exploration of gas reserves in the Black Sea.

These actions come⁢ as Lukoil attempts to divest its foreign assets – encompassing hundreds of gas stations in roughly 20 ⁣countries and ⁣several refineries – before a November 21st deadline. A potential sale to Swiss energy trader Gunvor recently collapsed⁢ after⁤ the U.S. Treasury⁣ Department ‌labeled Gunvor a‌ “puppet of the Kremlin” and signaled opposition to the deal. The U.S. Treasury stated‍ on Platform X that Gunvor would ‍not receive a license “provided that Vladimir Putin⁣ continues the‌ ‘senseless murder.'”