Despite European Union sanctions on Russian oil, Bulgaria’s Lukoil Burgas refinery remains a key player in processing Russian crude. An investigation by Ukrainian journalist Mykhailo Tkach, published by Ukrainska Pravda, reveals that the refinery is still handling Russian crude oil, which is being transported by Russia’s shadow fleet. These vessels transship oil offshore near Bulgaria’s coast, just off the port of Rosenets, the main entry point for crude to the Burgas refinery.
Tkach’s investigation includes footage showing ship-to-ship (STS) transfers near Rosenets, with the Liberian-registered tanker Lipari arriving from Novorossiysk, Russia, on November 24. The Lipari transferred crude oil to the Maltese-registered tanker Stames at sea. This STS operation appears to have delivered Russian naphtha, a product for which Bulgaria was granted an EU exemption in 2022, allowing imports until the end of 2024.
According to reports from Global Witness, Bulgaria imported significantly more Russian naphtha than needed in 2023. The Burgas refinery processed 5 million tons of Russian naphtha in the first ten months of 2023, contributing around €1 billion to the Russian government. In response, the Bulgarian government announced plans to reduce Russian naphtha imports by 80% by 2024, aiming to halt all imports by the end of the year. However, Tkach’s investigation suggests that the Burgas refinery is still processing Russian oil, undermining these efforts.
In a bid to curb Russian oil imports, the EU imposed additional sanctions in December 2024, targeting around 50 more Russian oil tankers, bringing the total number of sanctioned vessels to approximately 80. Despite this, Tkach’s findings indicate that Bulgaria continues to facilitate Russian STS operations related to the Burgas refinery. Analysts believe the Russian naphtha may be rebranded as Kazakh crude (KEBKO) to bypass EU restrictions.
The Bulgarian government’s involvement in these activities has raised suspicions of complicity. Ukrainian and Bulgarian media suggest that officials in Bulgaria may be aware of the lucrative, multimillion-dollar deals. Some analysts argue that this ongoing trade is part of Russia’s broader disinformation and influence campaign in the region.
Bulgaria’s alignment with Russian interests is also reflected in its political decisions. Prime Minister Grachev’s government has resisted signing a bilateral security agreement with Ukraine, a move that isolates Bulgaria from 25 EU member states that have already signed similar agreements. This decision mirrors Hungary’s pro-Russian stance under Prime Minister Viktor Orbán.
Interestingly, Lukoil’s Bulgarian assets, including the Burgas refinery—the largest in the Balkans—are reportedly up for sale. Hungarian oil and gas company MOL is said to be in talks to acquire these assets, with Hungarian President Orbán reportedly pushing for the deal. Orbán has visited Bulgarian officials, including President Radev, to discuss the sale. Concerns are rising that Russian financing may be involved, as MOL’s financial resources are reportedly limited. If Russian connections are confirmed, the deal could raise alarms within the EU, potentially leading to efforts to block it.
Further complicating the sale is Lukoil’s failure to pay taxes. The company holds a dominant position in Bulgaria’s fuel market but has not paid profit taxes. Bulgarian sources estimate that Lukoil owes around BGN 500 million ($265 million) in unpaid taxes.
Bulgaria is not alone in violating EU sanctions on Russian oil. Romania has also been implicated in similar practices. In November, the Panama-registered tanker Sredina arrived in Romanian waters near the port of Constanta, where it conducted an STS transfer with another Panama-registered vessel, Melahat. Melahat then docked with the Russian-registered VF Tanker 3, which had sailed directly from Novorossiysk, Russia. Other vessels, such as the Altai, have also transported Russian crude to Romanian ports like Midia.
Turkey continues to be another key route for Russian oil and products into Europe. The EU’s Anti-Fraud Office is currently investigating the Turkish route, where vessels from Russia pass through ports without refining capabilities. Marine Traffic has documented several vessels from Novorossiysk, confirming Turkey’s role in facilitating the ongoing flow of Russian oil into European markets.
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