Russian Oil Imports to EU Through Lukoil Refinery Surged

The Russian company had threatened to shut down the Bulgarian refinery, in the event of quick imposition of ban on Russian crude oil imports.

SEATTLE (Oil Monster): The Russian oil imports to EU countries via Lukoil refinery in Bulgaria has increased significantly over the past few months. This has resulted in additional profits in several hundred millions during the past quarter, said Martin Vladimorov, analyst at the Centre for the Study of Democracy (CSD).

CSD, along with two other European organizations, had raised the alarm about the transhipment of fuels from Russian crude oil to Bulgaria for export to Western European countries. Lukoil had clarified that it was exporting low-octane petrol to the EU, which does not fall under the EU sanctions against Russia. The Russian company had threatened to shut down the Bulgarian refinery, in the event of quick imposition of ban on Russian crude oil imports.

The dispute could potentially cause chaos in the regional fuel market, as Lukoil refinery happens to be the largest refinery in the entire region. Also, the refinery will continue its dominant position even if the exemption for importing Russian crude is withdrawn, analysts noted.

As per CDS analysis, the Russians are most likely to sell their Bulgarian business next year, having made strong profits from its Bulgarian operations.

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