Britain Grants Temporary Sanctions Exemption for Bulgarian Lukoil Units

Britain has introduced a temporary exemption that permits continued business with two Bulgarian subsidiaries of the sanctioned Russian oil group Lukoil. The general license, issued by the UK Financial Sanctions Enforcement Office, enables companies and financial institutions to conduct transactions with Lukoil Bulgaria EOOD and Lukoil Neftochim Burgas AD, along with their affiliated firms. The authorization, which took effect on November 14, 2025, is valid until February 14, 2026, and allows the transfer of payments and economic resources under both existing and newly signed contracts.

The decision comes shortly after Bulgaria advanced its own measures aimed at securing relief from United States and United Kingdom sanctions imposed on Russian oil operations. Sofia recently nominated a special administrator for Lukoil Neftochim as part of efforts to ensure the refinery’s uninterrupted functioning and to maintain stable energy supplies. Justice Minister Georgi Georgiev and Energy Minister Zhecho Stankov reported following an extraordinary meeting of the Security Council, convened by Prime Minister Rosen Zhelyazkov, that negotiations with both London and Washington are ongoing and intensive. According to Georgiev, an exemption from the United States is also expected soon, with GERB leader Boyko Borisov suggesting earlier in the day that a decision could come imminently.

The UK’s move follows the sanctions announced on October 15, 2025, targeting Russia’s largest oil producers, including Lukoil and Rosneft, for their role in supporting Moscow’s war in Ukraine. Those measures introduced an asset freeze, restrictions on British trust services, limitations on shell-company operations, and actions aimed at curbing the so-called shadow fleet of tankers used to bypass sanctions. The newly issued license specifies that businesses may continue carrying out payments involving the Bulgarian subsidiaries, settle contractual obligations, and exchange economic resources.

This approach mirrors a similar decision by Britain in October allowing German subsidiaries of sanctioned Rosneft to continue operating because they are under state control in Germany. The United States has issued comparable authorizations.