January 31, 2025 [Reuters]- Russia’s second-largest oil producer Lukoil plans to raise around $2 billion from the sale of its Burgas oil refinery in Bulgaria, RIA news agency reported late on Thursday quoting Bulgaria’s Prime Minister Rosen Zhelyazkov.

Lukoil did not reply to a request for immediate comment.

Lukoil has been under pressure to sell the 190,000 barrel-per-day (bpd) plant due to sanctions against Russia over the conflict in Ukraine.

Bulgaria has halted Russian crude imports and also restricted exports of all refined products produced from Russian crude from its sole refinery.

It has also imposed a 60% tax on the refinery’s profits.

The company has said it was reviewing its strategy with regards to assets in Bulgaria. In November, Litasco, Lukoil’s trading arm, said various options were being analysed with independent advisors and a number of “reputable market players”.

Bulgaria was the fourth largest buyer of sea-borne Russian oil in 2023, purchasing over 100,000 bpd.

Earlier this month, Kazakhstan’s state oil and gas company KazMunayGaz said Lukoil had invited it to participate in a tender to acquire the refinery.

Hungarian oil and gas group MOL has also submitted a bid for the Burgas refinery. Hungary’s Prime Minister Viktor Orban said that MOL was one of seven bidders in the tender.

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