In brief
On 28 October 2026 the UK Treasury extended a general licence for Lukoil Bulgaria subsidiaries through 26 February 2027, allowing them to conduct business transactions that would otherwise breach sanctions. Bulgarian officials said the move secures the continuity of crude oil deliveries and the Burgas refinery, while the UK emphasizes ongoing cooperation with British insurers and financial partners.
In London, the UK Treasury announced on 28 October 2026 that it extended a general licence for Lukoil Bulgaria subsidiaries through 26 February 2027, a move that will allow companies to make payments and conduct other transactions related to their normal business activities without breaching the UK sanctions regime.
The licence, which originally took effect on 14 November 2025, is now extended for a further two years and covers Lukoil Bulgaria EOOD, Lukoil Neftochim Burgas AD, Lukoil Aviation Bulgaria EOOD and Lukoil Bunker Bulgaria EOOD. The decision follows several previous extensions, the most recent of which occurred on 28 October 2026.
Representatives of the Bulgarian Ministry of Economy, Investment and Industry said the extension is a vital step toward ensuring stability and predictability for all the companies’ operations in Bulgaria, as well as ensuring the security of crude oil supplies and the uninterrupted operation of the Burgas refinery.
Alexander Poulev, Bulgaria’s Deputy Prime Minister and Minister of Economy, Investment and Industry, said the licence extension is the result of active dialogue at government level under Prime Minister Rumen Radev and talks with our British partners and the British Embassy in Sofia.
“the licence extension is the result of active dialogue at government level under Prime Minister Rumen Radev and talks with our British partners and the British Embassy in Sofia.”
He added that the licence is essential for maintaining key business operations, including crude oil deliveries and tanker insurance. British insurers are crucial to the functioning of the supply chain, providing insurance for more than 90% of the tankers delivering crude oil. Maintaining the ability to work with British companies and UK-linked partners is an important condition for ensuring continuity of operations.
“British insurers are crucial to the functioning of the supply chain, providing insurance for more than 90% of the tankers delivering crude oil. Maintaining the ability to work with British companies and UK-linked partners is an important condition for ensuring continuity of operations.”
The extension also aligns with a parallel extension issued by the U.S. Department of the Treasury, which extended authorisation for certain transactions involving Lukoil’s Bulgarian subsidiaries until 24 April 2027. Both extensions come amid ongoing sanctions on the Russian oil company, which limit its ability to secure financing and insurance for its supply chain.
Lukoil has announced plans to sell its international assets, following the imposition of sanctions. In late January the company announced that it had reached an agreement with a U.S. buyer to acquire such assets, though details of the deal remain limited.
The decision to extend the licence reflects a broader strategy by the UK government to maintain essential oil trade flows while upholding sanctions. It also highlights the importance of continued cooperation between Britain, Bulgaria and the wider international community in safeguarding the stability of the global energy market.
