The European Commission has launched an investigation into Bulgaria after the Russian oil giant Lukoil reportedly exploited a sanctions loophole, funneling nearly €1 billion into the Kremlin’s war chest. This comes despite EU sanctions aimed at crippling Russia’s energy revenue stream following its invasion of Ukraine.
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Bulgaria was granted a unique exemption from the EU’s Russian oil import ban, citing national energy security. This allowed Russian crude to be processed at a Lukoil-owned refinery in Burgas, which then exported refined petroleum products—including to other EU countries such as Malta.
According to a classified parliamentary report, seen by Politico, the refinery’s operations generated €983 million in tax revenue for Russia and an additional €500 million in profit for Lukoil. From March to July, nearly 3 million barrels of refined Russian-origin products were shipped by sea.
While technically not in breach of EU sanctions, the revelation has alarmed Brussels. A senior EU official, speaking anonymously, admitted that the sanction exemptions “cause problems” and confirmed that Bulgaria has been asked to explain the situation.
🇧🇬 Bulgarian Prime Minister Nikolai Denkov responded by promising to tighten enforcement and amend legislation where sanctions fall short. “We will ensure that more money goes to the Bulgarian budget and less to Russia’s war efforts,” Denkov said at a summit in Sofia.
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