US Treasury Dept issues derogation on transactions involving Lukoil entities in Bulgaria

The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has issued a general licence authorising transactions involving certain Lukoil entities in Bulgaria, in connection with previously imposed US sanctions against the Russian energy giant, according to a November 14 OFAC statement.

The OLAF announcement applies to Lukoil Nefotchim Bourgas JSC, Lukoil Bulgaria EOOD; Lukoil Aviation Bulgaria EOOD; and Lukoil Bulgaria Bunker EOOD; or “any entity in which one or more of the above persons own, directly or indirectly, individually or in the aggregate, a 50 percent or greater interest”

The authorisation granted is effective until 00:01 Eastern Time on April 29 2026, OFAC said.

Earlier on November 14, the UK Office of Financial Sanctions Implementation issued a General Licence which allows for the continuation of business operations with the Lukoil Bulgaria Entities.

“A Person may continue business operations involving the Lukoil Bulgaria entities and Their Subsidiaries including, but not limited to: Payments to or from the Lukoil Bulgaria entities under any existing or new obligations or contracts; Payments to or from any other Person under any obligations or contracts; and Provision of, and receipt of, economic resources from the Lukoil Bulgaria entities,” the announcement by the UK body said.

The announcements came as Bulgaria’s government approved the appointment of National Revenue Agency head Roumen Spetsov as the government’s special administrator of Lukoil assets in Bulgaria.

As The Sofia Globe reported, Bulgaria’s National Assembly approved on November 7 amendments to the country’s law regulating operations in the oil and oil products industry, expanding the powers of special representatives appointed to manage assets deemed of critical importance.

Head of state President Roumen Radev exercised his limited power of veto against the bill on November 12, but Parliament voted to overturn the veto on November 13.

In a statement on October 22, the US Treasury Department said that the action by OFAC targets Russia’s two largest oil companies, Open Joint Stock Company Rosneft Oil Company (Rosneft) and Lukoil OAO  (Lukoil).

(Photo, of US Treasury Department headquarters in Washington DC: MeanieHyaena via Wikimedia Commons)

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