SeeNews | 25 February 2026
Lukoil unit threatens legal action against Bulgaria over special administration
by Radina Veleva
Swiss-based Litasco, the international supply and trading arm of Russia's Lukoil, said on Wednesday that it may initiate arbitration proceedings against Bulgaria after the country transferred the management of Lukoil's local subsidiaries to a special administrator.
Litasco, the immediate shareholder of fuel retailer Lukoil Bulgaria and the country's sole oil refilenry - Lukoil Neftochim Burgas, believes that the imposition of external management and all subsequent actions undertaken by it have materially affected Litasco's investments in its Bulgarian subsidiaries and have resulted in significant losses for the Lukoil group, it said in a statement.
On February 19, Litasco submitted a notice of dispute to Bulgaria, claiming the measures constitute breaches of the country's obligations under the applicable bilateral investment treaty and the Energy Charter Treaty, as they unlawfully expropriate Litasco's investments without compensation, it added.
In November, the Bulgarian parliament adopted legislation granting a government-appointed special manager at Lukoil Neftochim the right to sell the Lukoil Neftochim Burgas refinery and fuel retailer Lukoil Bulgaria in order to ensure that the refinery and other Lukoil sites in Bulgaria continue to operate. The move came after a month earlier the U.S. Treasury Department imposed sanctions on Lukoil and another Russian oil giant, Rosneft, as part of efforts to reduce energy revenues used by Moscow to finance its war in Ukraine.
In January, Lukoil said it has agreed to sell its international business to U.S. investment firm Carlyle.
In Southeast Europe, Lukoil owns Bulgaria's sole refinery Lukoil Neftohim Burgas, the Petrotel refinery in Romania, petrol station networks in both countries, as well as in Serbia, Croatia, Montenegro, Moldova, and North Macedonia, and several depots for petroleum products across the region.
