Lukoil Refinery in Bulgaria Still Processing Russian Oil Despite EU Sanctions

Business » ENERGY | December 20, 2024, Friday // 12:13
Bulgaria: Lukoil Refinery in Bulgaria Still Processing Russian Oil Despite EU Sanctions

An investigation reveals that Lukoil’s Burgas refinery continues to process Russian oil, which is being transported by vessels from Russia's shadow fleet. The oil is transshipped in Bulgarian territorial waters, just a few kilometers from the port of Rosenets, which serves the refinery. This process, which takes place at sea, is intended to disguise the Russian origin of the oil before it is delivered to European Union ports.

The investigation, conducted by journalist Mykhailo Tkach from Ukrainska Pravda, documented these activities with a video. On November 2024, the Liberia-registered tanker Lipari arrived in Bulgaria from Novorossiysk, Russia, docking near the Rosenets port. A Maltese-registered tanker, Stamos, which had visited Russian ports multiple times in 2023, was filmed approaching the Lipari. The two vessels transferred oil directly at sea, a process that typically takes around 24 hours.

Despite EU sanctions on Russian oil, the transshipment of Russian naphtha continues. In 2022, the European Commission granted Bulgaria an exemption to import Russian naphtha until the end of 2024 for its energy security. However, the anti-corruption organization Global Witness reported that Bulgaria imported more Russian naphtha than necessary for domestic needs in 2023. The Burgas refinery processed almost 5 million tons of Russian naphtha in the first ten months of 2023, generating over 1 billion euros in revenue for the Russian government, part of which funded the Wagner Group, according to Vladimir Putin’s statements.

In 2023, Bulgaria’s government announced plans to reduce imports of Russian naphtha by 80% and stop them entirely by 2024. However, the shadowy oil trade continues. As of November 2024, the Stamos tanker was observed unloading Russian oil at the Burgas refinery, with two tanks at the base already full. This suggests that the refinery is still processing Russian oil, despite the Bulgarian government’s claims to the contrary.

The continued use of such schemes allows Russia to bypass sanctions, funneling billions of euros into the Kremlin’s coffers to support its war efforts in Ukraine. The use of "shadow fleets" and offshore transfers makes it difficult for authorities to monitor and enforce sanctions effectively.

In response to these tactics, the European Union imposed additional sanctions on December 11, 2024, targeting approximately 50 more Russian oil tankers that are part of the "shadow fleet." These sanctions are part of the EU’s ongoing efforts to curb Russia’s ability to finance its war against Ukraine by restricting its oil exports. The new sanctions bring the total number of banned ships to around 80, following similar actions by the UK and the US. European Commission President Ursula von der Leyen welcomed the move, emphasizing the commitment of the EU and its G7 partners to maintaining pressure on the Kremlin.

Sources:

  • Ukrainska Pravda
  • Bessarabian Front
  • OFFNews
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Tags: Lukoil, Russian, oil, Bulgaria

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