Bulgaria Allowed Russia to Earn 1 Billion Euros from the Oil Derogation

The Kremlin earned about 1 billion euros from the European derogation allowing Bulgaria to continue importing Russian oil.

Politico reports this, citing a joint investigation. It is the work of the non-governmental organization Global Witness, the Center for the Study of Democracy, the Center for Energy and Clean Air Research and the journalist Victor Jack.

In December 2022, the European Commission granted Bulgaria a derogation from the sanctions against Russia. The Balkan country can buy crude Russian oil until the end of 2024. The goal is that Bulgarian citizens do not suffer from its shortage. The derogation does not provide for the Lukoil refinery near Burgas to process the fuel and sell it abroad for profit.

However, the authorities in Sofia took advantage of the loopholes and allowed millions of barrels of Russian oil to reach the refinery. After that, Lukoil exported it as refined fuels. The product also reached EU member countries. Only in the period from March to July this year, the refinery exported nearly 3 million barrels of fuel, most likely of Russian origin.

From a legal point of view, this does not violate the sanctions, according to experts cited by Politico. The loopholes that Lukoil can take advantage of are created by ambiguities in European rules, including what counts as trade, what fuels Bulgaria can export and whether it can store them, and how the Commission collects data.

EU countries are calling on Brussels to act and close these loopholes. According to three diplomats, the Commission should review the derogation option for Bulgaria before the adoption of the 12th package of sanctions against Russia, which is expected in the coming days.

"If the purpose of the derogation was to help ordinary Bulgarians to survive, then we have failed," said one of the diplomats.

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