Bulgaria’s government is moving quickly to introduce legislation that would allow the appointment of a special state manager to oversee the operations of Lukoil in the country. GERB leader Boyko Borissov announced that the law, based on the so-called German model, will be adopted urgently so that all procedures are completed before U.S. sanctions on the Russian oil company take effect.

Earlier today, it became clear that the Swiss commodities trader Gunvor is abandoning its bid to purchase Lukoil’s Burgas refinery after the U.S. Treasury described the company as a “Kremlin puppet.” Borissov said the aim is to have everything related to the appointment of the special manager finalized before the sanctions begin to apply, pointing out that Germany has already secured a six-month exemption under a similar mechanism.

Further reading: Gunvor Abandons Lukoil Deal After US Labels It a ‘Kremlin Puppet’

This morning, the government submitted to parliament amendments to the Law on the Administrative Regulation of Economic Activities Related to Oil and Petroleum Products. The changes introduce the position of a special sales representative at Lukoil Bulgaria. The bill was submitted by MPs from DPS-New Beginning, GERB, There Is Such a People, and BSP-United Left, according to the National Assembly’s website.

Preliminary information suggests that the state-appointed representative will be granted extensive powers, including the authority to manage and sell both capital and property belonging to the company. The government’s motives explain that the sanctions imposed on Lukoil’s assets will effectively halt operations at the Neftochim refinery in Burgas, as financial institutions will refuse to process payments involving companies linked to Lukoil in Bulgaria. Because of this, the proposed changes expand the powers of the special commercial manager, enabling them to continue all refinery operations and other company activities beyond November 21, 2025.

According to the submitters, the amendments replicate the German approach, which has already been accepted by U.S. authorities as a temporary solution allowing continued refinery operation under state oversight.

In a separate reaction, “We Continue the Change” co-chairman and former finance minister Asen Vassilev described Gunvor’s withdrawal from the deal as “very worrying.” Speaking to BNT, he said the government had hoped the transaction would resolve Bulgaria’s dependence on Lukoil without direct intervention. However, with the U.S. Office of Foreign Assets Control rejecting the deal, Bulgaria now faces an urgent situation.

Vassilev warned that if no action is taken before November 21, all banks will stop servicing Lukoil, preventing the company from purchasing crude oil or selling production. He recalled that a contingency plan was drafted back in 2022, during the war in Ukraine, and later reviewed by the Denkov cabinet. That plan, he said, outlines step-by-step actions for such a scenario but should have been activated weeks earlier given the short timeframe.

He stressed that implementing the plan would require a qualified manager supported by an international team to ensure uninterrupted fuel supplies. A failure to act, Vassilev warned, could have severe consequences for Bulgaria’s economy, potentially worse than the COVID-19 crisis, as disruptions in refinery operations would affect all sectors.

Meanwhile, Vassilev criticized next year’s draft budget, saying it includes poor spending priorities, lacks transparency, and offers no real expansion of social programs apart from a modest increase in maternity benefits. He argued that the government has alternative ways to balance finances without burdening citizens.

At the same time, parliament’s Energy Committee convened an extraordinary session to vote on the proposed amendments. The meeting lasted barely half a minute, with 12 MPs from the ruling coalition unanimously approving the changes. Committee chair Pavela Mitova from "There Is Such a People" went straight to voting without debate, concluding the process in just 32 seconds.

When the plenary session opened, Speaker Raya Nazaryan announced that Prime Minister Rosen Zhelyazkov and two deputy prime ministers would not attend parliamentary control due to “urgent commitments.” Soon after, DPS-New Beginning MP Stanislav Anastasov requested a 30-minute recess, after which the presidential council was expected to decide whether the committee’s decision would be immediately brought to the plenary floor.

“Yes, Bulgaria” co-chair Ivaylo Mirchev urged parliament to summon the economy and energy ministers, warning that the country could soon face fuel shortages. He pointed out that in less than two weeks, the refinery will be unable to perform financial transactions, calling the government’s silence on the matter “alarming.” Mirchev said the situation poses a serious threat to Bulgaria’s energy security and urged immediate state action.