Bulgarian Prime Minister Rosen Zhelyazkov confirmed that Bulgaria has struck a deal with the US to comply with sanctions on Russian oil, aiming to ensure the Lukoil Burgas refinery and related assets do not finance Russia’s ongoing war in Ukraine. The government has seized operational control of the refinery to guarantee fuel supplies through the winter and to prevent funds from flowing to sanctioned Russian entities. While Bulgaria and other EU states have secured temporary sanction exemptions, the arrangement is subject to US and UK review every six months. Energy Minister Zhecho Stankov announced a major expansion of Bulgaria’s gas transit capacity with a new pipeline, enabling LNG from Greece and the US to reach Ukraine, Moldova, and Central Europe, reducing regional reliance on Russian gas. Parliament’s emergency law and the state takeover have drawn debate, but the move positions Bulgaria as a regional energy hub in Europe’s shifting strategy to balance energy security with sanctions enforcement.

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