Russia’s Lukoil to sell refineries, fuel chains in Southeast Europe amid US sanctions

Russian oil producer Lukoil said it intends to sell its international assets due to US sanctions and that it has already begun reviewing bids. The company’s foreign subsidiaries include oil refineries in Bulgaria and Romania, as well as fuel retail chains across Southeast Europe.

The sale of Lukoil’s international assets is being carried out under a wind-down license from the United States Office of Foreign Assets Control (OFAC). In a press release, the company said it might apply for an extension of the license, if necessary to ensure uninterrupted operations of its subsidiaries.

The facilities up for sale include the largest oil refinery in the Balkans – Lukoil Neftohim Burgas in Bulgaria, as well as the Petrotel-Lukoil refinery in Romania. Lukoil also has fuel retail networks in Romania, Bulgaria, Turkey, North Macedonia, Croatia, Serbia, and Montenegro.

Lukoil operates the largest oil refinery in the Balkans and fuel retail chains across the region

Lukoil Neftohim Burgas is a major player in Bulgaria, supplying almost the entire market, according to reports. Its capacity is 190,000 barrels per day. On the other hand, the capacity of Petrotel-Lukoil in Romania is much smaller, at about 2.4 million tons per year.

The Bulgarian parliament has adopted legislative amendments requiring any sale of Lukoil’s assets in Bulgaria to be cleared by the country’s government and intelligence service.

Serbia-based oil company NIS is also under US sanctions, while the EU is imposing a ban on Russian gas

The US sanctions against Russian energy companies, which took effect earlier this month, are also affecting NIS, a Serbia-based oil refiner and fuel retailer owned by Russia’s Gazprom.

At the same time, the European Union plans to ban imports of Russian natural gas starting on January 1, 2026. However, a European Commission spokesperson said that it would not apply to the transit of Russian gas and would not affect deliveries to Serbia and Bosnia and Herzegovina.

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November 8, 2025

by AEA in News

Oil trader Gunvor set to take over Lukoil’s refineries, fuel chains in Southeast Europe

Russian oil producer Lukoil has accepted an offer from global commodities trader Gunvor Group Ltd. to acquire its international assets, which were put up for sale due to sanctions imposed by the United States over the war in Ukraine. The assets include oil refineries in Bulgaria and Romania, as well as fuel retail chains across Southeast Europe.

Lukoil has decided not to negotiate with other potential buyers. It will sell 100% of Lukoil International GmbH, which owns its assets outside of Russia, to Gunvor under key terms agreed earlier, according to an announcement from the Russian company. The value of the transaction was not disclosed.

Lukoil will not negotiate with other potential buyers

To conclude a binding agreement, the buyer needs to obtain permission from the US Office of Foreign Assets Control (OFAC), along with other approvals in relevant jurisdictions, Lukoil said.

If necessary, the two companies will apply for an extension of the existing OFAC license to ensure uninterrupted operations of Lukoil’s international assets and their banking servicing until the completion of the transaction, it added.

Gunvor is owned by Swedish billionaire Torbjörn Törnqvist

According to its website, Gunvor is one of the world’s largest independent commodities trading houses by turnover and a leading global oil trader. The company is majority‑owned by Swedish billionaire Torbjörn Törnqvist.

Lukoil’s facilities up for sale include the largest oil refinery in the Balkans – Lukoil Neftohim Burgas in Bulgaria, as well as the Petrotel-Lukoil refinery in Romania. The Russian company also has fuel retail networks in Romania, Bulgaria, Turkey, North Macedonia, Croatia, Serbia, and Montenegro.

The US sanctions targeting Russian energy companies took effect earlier this month.

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January 19, 2018

by AEA in News

Energy Community opens dispute settlement procedure against Albania, Bosnia and Herzegovina and Ukraine

The Energy Community Secretariat initiated ex officio preliminary dispute settlement procedures against Albania, Bosnia and Herzegovina and Ukraine for the lack of unbundling of the countries’ electricity distribution system operators. In its Opening Letters, the Secretariat takes the view that the three Contracting Parties fail to comply with their obligations under the Energy Community Treaty by (completely, partly or incorrectly) not having transposed the unbundling requirements of the Third Energy Package into national legislation and not having taken measures to implement legal and functional unbundling of their national electricity distribution system operators in practice. The electricity distribution system operators of the three countries still have fully integrated legal and functional governance structures for electricity distribution and supply.

Unbundling of distribution system operators is one of the central elements of electricity market liberalisation and has been obligatory in the Energy Community since 2015. Only when separated from other segments of the energy supply chain can distribution system operators act independently and consumers benefit from greater choice of electricity supply companies, which in turn offer improved services at a fair price.

Interested parties may be granted access to the case file and may submit written observations on the present case. All requests for information should be addressed to the Deputy Director and Legal Counsel at [email protected] or +43 1 535 2222 24 and should make reference to the relevant case number.