Bulgaria sounds out exemption to Trump’s oil sanctions amid fears of fuel shortages

Bulgaria is exploring requesting an exemption to new U.S. sanctions against Russia’s largest private oil company, according to two people familiar with the matter, as it fears the measures will cause severe fuel shortages and a populist backlash across the country.

President Donald Trump last week announced sanctions on Russia’s two largest oil producers, Rosneft and Lukoil, prompting several EU countries in which the firms operate to scramble for exemptions.

Bulgaria is home to the sprawling Lukoil-owned Burgas refinery, which provides up to 80 percent of the country’s fuel. The firm has historically cast an immense economic shadow over the Balkan nation, while the facility has previously been linked to EU sanctions loophole exploitation.

Now, the government has asked Washington how it should go about requesting an extension to the sanctions beyond their start date of Nov. 21, according to the people, who were briefed on the matter and granted anonymity to speak freely on sensitive matters.

The government is concerned the sanctions could force the refinery to stop working as banks pull back from the facility, the people said, prompting widespread fuel shortages and protests.

Sofia argues that could precipitate the government’s collapse, the people said, bolstering support for Bulgarian President Rumen Radev, a figure seen by some as pro-Russian who has publicly floated the idea of creating a new political party.

The Bulgarian energy ministry declined to comment. Bulgaria’s presidency didn’t immediately respond to questions from POLITICO.

Julian Popov, a former Bulgarian environment minister and senior fellow at the Strategic Perspectives think tank, agreed the government is “not properly prepared” and has “no contingency plan” for Lukoil’s exit, making fuel shortages likely unless a solution is found.

He argued the government should now move to take operational control over the refinery, backed by an “international committee” of global lawyers and experts that can help Sofia manage the strategic facility.

Still, experts questioned the claim that if the U.S. fails to grant a sanctions exemption, Radev would storm to power.

That is a “scare tactic” from the government, said Ilian Vasilev, a former Bulgarian ambassador to Russia who now heads the Innovative Energy Solutions consultancy, in a bid to avoid acting fast on selling the refinery.

“There are legitimate interests and serious interests in buying Lukoil assets,” he argued, adding there is “no need to panic.”

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