Lukoil’s global operations are unraveling after U.S. sanctions took effect, sending ripples through the Balkans, where the Russian oil giant’s refineries and fuel networks are crucial for national energy supplies.
The collapse of Swiss trader Gunvor’s bid to acquire Lukoil’s overseas assets has intensified pressure on governments in Southeast Europe to act before the November 21 U.S. deadline that bans companies from doing business with the sanctioned Russian firm.
While Western Europe is better positioned to absorb the disruption, energy markets in Bulgaria, Romania, and Moldova are bracing for shortages that could test political stability and EU solidarity in the region.
Bulgaria Moves to Seize Lukoil Refinery
In Sofia, parliament rushed through legislation on Friday enabling the state to temporarily take control of Lukoil’s Burgas refinery, the largest in the Balkans and a key supplier of fuel for Bulgaria, North Macedonia, and Serbia.
Under the law, a state-appointed commercial manager will oversee operations and may sell the refinery to ensure continuity of supply. The proceeds would go into a frozen account in Lukoil’s name, inaccessible to the company, officials said.
“This is a protective measure, not a nationalization,” said Boyko Borissov, Bulgaria’s former prime minister and head of the GERB-led coalition. “We must guarantee energy stability and avoid U.S. sanctions.”
The refinery’s fate carries regional implications: Burgas processes Russian crude arriving via the Black Sea and distributes refined products across the Balkans, including through Lukoil’s retail chain in North Macedonia and Kosovo.
Moldova Seeks Exemption Amid Fears of Fuel Shortages
Moldova’s energy minister Dorin Junghietu said on Friday that Lukoil would be forced to halt operations by November 21 unless Washington grants a temporary waiver. The company operates dozens of petrol stations and controls the only jet fuel supply terminal at Chisinau International Airport.
“We have requested an exemption from the United States to prevent disruption to fuel supplies,” Junghietu told reporters. “Otherwise, the impact could be immediate and severe.”
Chisinau has already rejected Lukoil’s proposal to sell its airport infrastructure to another firm, citing transparency concerns. A sudden shutdown could exacerbate inflation and weaken Moldova’s already fragile energy security.
Regional Dependence on Russian Fuel
Lukoil’s influence in the Balkans extends far beyond its direct assets. In Serbia and North Macedonia, the company’s refined products flow through regional pipelines and depots, indirectly sustaining local distributors. Analysts warn that sanctions-driven supply gaps could trigger price spikes and shortages across non-EU states that rely on these networks.
“The Balkans remain heavily dependent on Russian fuel, even as EU members try to diversify,” said energy analyst Vesna Ristova in Skopje. “The Lukoil shock is a reminder of how vulnerable the region still is to geopolitical turbulence.”
Moscow Cries Foul as Finland Runs Dry
The Kremlin said Lukoil’s interests “must be respected,” calling U.S. sanctions “illegal.” In Finland, Lukoil’s subsidiary Teboil reported that it was running out of fuel as banks and traders cut ties with the company.
“We are depleting stocks, and several stations are already without certain fuel types,” said Toni Flyckt, Teboil’s communications director.
A Turning Point for Balkan Energy Policy
With the EU pushing for full alignment with its sanctions regime, Southeast Europe faces a tough balancing act between transatlantic pressure and domestic energy realities.
For Bulgaria and Romania — both EU members — taking control of Lukoil’s assets is a test of regulatory agility and political resolve. For neighbors like North Macedonia and Serbia, it’s a warning of how energy dependence can quickly turn into economic vulnerability.
“The crisis could accelerate diversification, but only if governments act in concert,” said Ristova. “Otherwise, it risks deepening divisions between EU and non-EU Balkan states.”