Russian owner of Lukoil files lawsuit against Bulgaria

Litasco SA, a Swiss-registered company that is part of Russia’s Lukoil group and the direct owner of Lukoil Neftohim Burgas and Lukoil Bulgaria, has initiated formal proceedings to challenge the actions of the Bulgarian state related to the removal of the Russian management and the appointment of a special commercial manager – former head of the National Revenue Agency Rumen Spetsov.

The Russian company’s statement does not specify exactly what actions will be taken but it is likely to be an arbitration case. Nor does it specify the compensation that will be sought from the state. However these actions are somewhat expected as Bulgarian experts warned of such a possible turn of events after the removal of Russian control over the group’s four companies in the country.

External management of Lukoil

On November 14, 2025 the National Assembly adopted legislative changes that introduced a mechanism for external management of Lukoil Neftohim Burgas AD, Lukoil Bulgaria EOOD and two other companies of the group in Bulgaria. The measure allowed the state to appoint a special commercial manager to take control of the companies’ management.

External management was introduced as a tool to protect energy security and ensure the normal operation of the country’s largest refinery after the US sanctions against the Russian group. Under the rules adopted on November 17, 2025 the management of the affected companies was transferred to a special commercial manager appointed by law.

The dispute

On February 19, 2026 – the day the caretaker government was appointed – Litasco SA filed a formal notice of challenge with Bulgaria. The company states that it is taking action to protect its rights and legitimate interests as the owner of the affected companies.

The filing of a notice of dispute is usually the first step towards international investment arbitration against the state.

Litasco considers that the measures taken by the Republic of Bulgaria constitute violations of Bulgaria’s obligations under the applicable bilateral investment treaty and the Energy Charter Treaty.

Specifically these measures constitute an unlawful expropriation of Litasco’s investments without compensation. In the absence of an amicable solution Litasco intends to use all available legal remedies including initiating arbitration proceedings at the International Centre for Settlement of Investment Disputes. Litasco and other organisations within the Lukoil group reserve all rights and remedies,” the company said in a statement.

Potential consequences

Any arbitration could result in significant financial claims against Bulgaria if the company claims compensation for damages or losses resulting from the external administration.

The dispute between Litasco and the Bulgarian state comes amid ongoing tension over the future of the Lukoil Neftohim Burgas refinery, which remains a key element of the country’s energy system.

Bulgarian institutions or Rumen Spetsov have not yet issued an official position on the case.

Translated with DeepL.