EU escalates pressure on Russia with 15th sanctions package
- Bulgaria's Lukoil Burgas refinery processes Russian oil via shadow fleet, despite EU sanctions.
- An investigation confirms large amounts of Russian naphtha processed with significant revenue for Russia.
- Continued compliance and involvement in sanction-evasion raise concerns about Bulgaria's alignment with EU policies.
In 2023, Bulgaria’s Lukoil Burgas refinery has kept processing Russian oil amid ongoing European Union sanctions aimed at reducing Russia’s influence in Europe following its invasion of Ukraine. Despite the EU's 15th sanctions package, which targets numerous Russian vessels and entities, the Burgas refinery has relied on a shadow fleet to import and process these Russian crude supplies, leading to suspicions that Bulgaria is engaged in sanction-evasion tactics. Investigative reports have revealed that up to five million tons of Russian naphtha were processed in the first ten months of 2023, significantly contributing to Russian state revenues. Additionally, concerns have arisen regarding the Bulgarian government's complicity in these operations. An investigation by Ukrainian journalist Mykhailo Tkach highlighted ongoing ship-to-ship transfers occurring near the port of Rosenets, the primary delivery point for the Burgas refinery. Following these revelations, significant pressure has been mounting on the Bulgarian government to take action against such activities. However, Bulgaria’s leadership, driven by Prime Minister Grachev, appears reluctant to align fully with EU and NATO partners on the issue, further aggravating tensions with other EU member states. Furthermore, Hungary’s MOL has expressed interest in acquiring Lukoil’s Bulgarian assets, which adds another layer to the complexities of regional politics. This acquisition would not only bolster Hungary's energy security but also potentially deepen Russian influence in the Balkans as other nations like Romania and Turkey have been identified in similar sanction-evasion schemes. The intricate web of geopolitical alignments suggests a challenging landscape for EU cohesion. As Bulgaria heads towards potential reform and policy changes, the priority remains to diminish reliance on Russian energy sources. The Bulgarian government has publicly stated its intentions to drastically reduce naphtha imports by 80% by 2024, although realities on the ground continue to demonstrate an ongoing compromise with Russian interests. The upcoming presidency of Poland in the EU, scheduled for January 2025, may spur renewed efforts to address these violations of sanctions and foster a unified approach to energy security and external threats.