Burgas, Bulgaria — An investigation by journalist Mykhailo Tkach of Ukrainska Pravda has revealed that Lukoil’s Burgas refinery continues to process Russian oil transported by vessels from Russia’s “shadow fleet.”
The covert transshipment activities, aimed at masking the oil’s Russian origin, occur in Bulgarian territorial waters, mere kilometers from the Rosenets port that services the refinery.
The investigation documented the operation with video evidence, exposing how oil is transferred at sea between tankers before delivery to the European Union.
In November 2024, the Liberia-registered tanker Lipari arrived in Bulgaria from Novorossiysk, Russia.
It was docked near Rosenets when the Maltese-registered tanker Stamos, a vessel with multiple Russian port visits in 2023, approached for an at-sea transfer. This transshipment process, which takes about 24 hours, allows the oil’s origin to be obscured.
Exemptions Exploited Amid Sanctions
Despite EU sanctions targeting Russian oil, Bulgaria continues to import Russian naphtha under a 2022 exemption granted by the European Commission.
The exemption, set to expire at the end of 2024, was designed to safeguard Bulgaria’s energy security. However, anti-corruption watchdog Global Witness reported that in 2023, Bulgaria imported more Russian naphtha than required for its domestic needs.
The Burgas refinery reportedly processed almost 5 million tons of Russian naphtha in the first ten months of 2023, generating over €1 billion in revenue for Russia.
A portion of this revenue, according to statements by Russian President Vladimir Putin, has supported the Wagner Group’s activities.
While Bulgaria’s government announced plans in 2023 to reduce Russian naphtha imports by 80% and eliminate them entirely by the end of 2024, the shadowy oil trade persists.
As recently as November 2024, the Stamos was observed unloading Russian oil at the Burgas refinery, indicating ongoing processing of the sanctioned product.
Sanctions Evasion Supports War Effort
The transshipment of Russian oil via “shadow fleets” undermines international sanctions, enabling billions of euros to flow into the Kremlin’s war chest.
Offshore transfers and the use of non-EU-registered tankers complicate enforcement efforts, allowing Russia to bypass restrictions and finance its war in Ukraine.
In response to these evasive tactics, the European Union imposed additional sanctions on December 11, 2024, targeting approximately 50 more Russian oil tankers identified as part of the “shadow fleet.”
This measure brings the total number of banned vessels to around 80, following similar moves by the United Kingdom and the United States.
EU Strengthens Commitment to Sanctions
European Commission President Ursula von der Leyen welcomed the latest sanctions, underscoring the EU’s and its G7 partners’ dedication to maintaining pressure on the Kremlin.
“We are resolute in curbing Russia’s ability to finance its aggression against Ukraine,” von der Leyen said in a statement.
As the Burgas refinery’s operations come under increasing scrutiny, the findings raise questions about the effectiveness of existing sanctions and the commitment of Bulgaria’s government to align with EU policies.
With the December sanctions now in effect, enforcement agencies face the challenge of dismantling the networks facilitating Russia’s shadow oil trade.