Lukoil Threatens Bulgaria with International Lawsuit Over Asset Seizure

Russian oil company Lukoil has formally accused Bulgaria of unlawfully seizing its assets in the country, signaling its intention to pursue legal action. On February 19, the Swiss-based Litasco, part of the Lukoil group and a shareholder in Lukoil Neftochim Burgas AD and Lukoil Bulgaria EOOD, submitted a notice of dispute to Bulgarian authorities, announcing that it may resort to arbitration through the International Centre for Settlement of Investment Disputes (ICSID).

Litasco’s claim invokes both the bilateral investment protection agreement between Switzerland and Bulgaria and the Energy Charter Treaty. The company argues that Bulgaria’s recent measures against its subsidiaries, including the imposition of external management and termination of the Rosenets port terminal concession, amount to illegal expropriation without compensation, violating its investment rights under these treaties. According to Litasco, these steps have caused substantial financial losses to the group.

The legislative changes in November allowed the Bulgarian parliament to introduce external management for Lukoil Neftochim Burgas AD, Lukoil Bulgaria EOOD, and other Lukoil group companies operating in the country. Shortly afterward, Lukoil announced its intention to defend its legal rights in Bulgarian courts. The government defended the move, with then-Prime Minister Rosen Zhelyazkov stating that the refinery is part of critical national infrastructure, and that the appointment of a special sales manager was intended to ensure uninterrupted operations after November 21.

This development followed the imposition of U.S. sanctions on Lukoil and Rosneft on November 23. Rumen Spetsov, former director of the National Revenue Agency, was appointed to oversee the operations of Lukoil’s Bulgarian subsidiaries as part of the special management arrangement. Lukoil now maintains that these interventions constitute a breach of Bulgaria’s legal obligations toward foreign investors and threatens international legal proceedings to protect its interests.