In brief
On 26 February 2026 the UK Treasury extended a general licence for Lukoil Bulgaria subsidiaries until 26 February 2027, allowing the companies to continue payments and transactions associated with their normal activities. The decision follows multiple prior extensions and runs alongside a U.S. Treasury authorisation that also covers these subsidiaries. Bulgarian officials stressed that the extension helps secure crude oil supplies and keep the Burgas refinery functional, while highlighting the importance of British insurers in the supply chain.
On 26 February 2026 the United Kingdom’s Treasury Office of Financial Sanctions Implementation announced that it had extended a general licence for Lukoil Bulgaria entities, authorising them to conduct business transactions until 26 February 2027. The move enables the companies to make payments and perform other activities related to their normal operations without breaching the UK sanctions regime that targets the Russian oil conglomerate.
The licence covers four subsidiaries: Lukoil Bulgaria EOOD, Lukoil Neftochim Burgas AD, Lukoil Aviation Bulgaria EOOD and Lukoil Bunker Bulgaria EOOD. It had first taken effect on 14 November 2025 and has been extended several times, most recently at the close of October 2026.
“The licence extension is an important step towards ensuring stability and predictability for the companies’ operations in Bulgaria, as well as security of crude oil supplies and the uninterrupted operation of the Burgas refinery,” said Bulgarian Economy, Investment and Industry Minister Alexander Poulev.
Poulev, who served as Deputy Prime Minister, added that the extension was secured through “active dialogue at government level under Prime Minister Rumen Radev and talks with our British partners and the British Embassy in Sofia.” The minister emphasised that keeping the supply chain open with British insurers—who cover more than 90 % of tankers delivering crude oil—is crucial for continuity.
“Maintaining the ability to work with British companies and UK‑linked partners is an important condition for ensuring continuity of operations,”” Poulev quoted in his statement.
Officials highlighted that this UK licence sits alongside an equivalent authorization from the U.S. Treasury, which was extended on 24 April 2027 for certain transactions involving Lukoil’s Bulgarian subsidiaries. The dual sanction regimes reflect the ongoing international pressure on Lukoil amid its broader asset divestment plans.
Following the imposition of sanctions, Lukoil announced intentions to sell its international assets and began receiving offers from potential buyers. In late January, the company revealed that it had reached an agreement with a U.S. counterpart, signalling a possible restructuring path.
The Bulgarian government will continue to work closely with international partners to safeguard supplies and protect the stability and interests of the national economy and consumers, the ministry said.
