Russian energy giant Lukoil has announced plans to sell its largest asset in the Balkans, the refinery in Burgas, Bulgaria, to a Qatari-British consortium by the end of the year, marking a significant shift in Moscow’s influence over energy supplies in Southeastern Europe, as reported by the Financial Times.

The sale has been approved by Russian President Vladimir Putin, who must still formally sanction the transaction. The deal is set to be completed with a consortium consisting of Oryx Global, led by Qatari businessman Ghanim Bin Saad Al Saad, and the London-based commodities trading firm DL Hudson.

The move follows the European Union's ban on Russian oil imports after Moscow's invasion of Ukraine in 2022, which made operations more challenging for Lukoil in Bulgaria. Bulgaria, a NATO and EU member, has also increased pressure on the company to exit, including imposing a 60% tax on its profits in an attempt to force it out of the country. In addition, Bulgaria has blocked the export of Russian-based oil products from the Lukoil Neftohim Burgas refinery.

Once friendly to Russia, Bulgaria’s stance shifted significantly after the invasion. The country began providing ammunition, weapons, and even diesel from the Lukoil refinery to Ukraine in the early stages of the war. Relations soured further when Russia was accused of attempting to sabotage Bulgarian arms facilities. Emilian Gebrev, a Bulgarian arms manufacturer, claimed that Russian saboteurs had attacked his factories and warehouses.

Ruslan Stefanov, director of the Sofia-based Center for the Study of Democracy, commented that the Lukoil refinery in Burgas represents a substantial risk to the economic security of both Europe and NATO.

Other potential buyers for the refinery include Azerbaijan's state-owned energy company Socar, Kazakhstan's KazMunayGas, and Turkey's Opet. Several other companies are also reportedly interested in acquiring the facility.