Russian Ambassador Warns of Economic and Political Risks in Bulgaria Over Lukoil and Euro Transition

Moscow’s ambassador to Bulgaria, Eleonora Mitrofanova, described the Bulgarian authorities’ recent actions regarding Lukoil’s assets in the country as hasty and legally questionable. In an interview with TASS, she said the legislative amendments allowing the state, via a special administrator, to take full control of the Russian company’s operations, including decisions on the potential sale of its assets, set a dangerous precedent.

The comments come amid upcoming U.S. sanctions against Lukoil and related companies, scheduled to take effect on November 21. These sanctions are linked to Russia’s war in Ukraine and will impact firms holding major stakes in fuel production in Bulgaria. In response, Bulgaria’s ruling parties - GERB, DPS, TISP, and BSP - quickly passed a law appointing a special manager to oversee Lukoil’s operations. This law grants the manager broad powers, including the ability to sell the refinery, and exempts their actions from judicial review.

Mitrofanova criticized the law, noting that from the moment of the manager’s appointment, the current management, shareholders, and owners lose decision-making authority. She compared the law to expropriation, emphasizing that it remains to be seen how it will function in practice.

Highlighting Lukoil Neftochim Burgas as one of Europe’s most modern refineries, Mitrofanova warned that disruptions in its operations could trigger a fuel crisis. The refinery currently meets roughly 80% of Bulgaria’s fuel needs and exports to neighboring countries. She added that Bulgaria’s upcoming transition to the euro could amplify potential economic and political complications.

Mitrofanova also stressed that Lukoil is a private enterprise operating in the interest of its shareholders rather than the Russian government. She previously made public comments on Bulgarian domestic politics, including party affiliations and cultural issues, often generating controversy.