UK Pauses Sanctions, Offers Lifeline to Bulgaria's Lukoil Amidst Energy Crisis

The UK has paused sanctions to allow Bulgaria's Lukoil-owned Burgas refinery to continue operations. Britain and the U.S. initially sanctioned Russian oil giants, aiming to limit funding for Russia's Ukraine conflict. A license is issued to facilitate transactions with Bulgarian entities, expected to be mirrored by the U.S.

The United Kingdom has temporarily halted sanctions enabling the Bulgarian-owned Burgas refinery, under Russia's Lukoil, to maintain business operations with various companies and banks. This move provides a critical respite amid escalating energy concerns in Europe.

Previously, both Britain and the United States imposed sanctions on Russia's major oil firms, Rosneft and Lukoil, with the intention of cutting financial support for Russia's war efforts in Ukraine. However, Britain's Office of Financial Sanctions Implementation has now issued a special license allowing transactions involving the Bulgarian subsidiaries of Lukoil, which will be valid until February 14.

A senior source indicated that similar measures from the U.S. are anticipated shortly. Meanwhile, Bulgaria's fuel reserves are critically low, with political leaders seeking additional exemptions from U.S. sanctions to ensure energy security.

(With inputs from agencies.)