At the start of 2024 Bulgaria shifted its oil sourcing away from Russian crude toward supplies from Kazakhstan, Iraq, and Tunisia. This change, reported by Reuters from data provided by traders and the London Stock Exchange Group, marks a notable shift in the country’s energy imports and reflects a broader move among several buyers to diversify supply sources.
During January 2024 Bulgaria moved to restrict the export of all oil products produced from Russian crude, even though the country had previously resisted broader EU sanctions aimed at Russia. The plan is to halt all crude oil imports from Russia by March, aligning with a gradual transition toward non-Russian feedstocks. This strategy comes as Bulgaria assesses its energy security and stabilizes its refining and distribution networks amid evolving European energy policy and global market dynamics.
The Burgas refinery, a key node in Bulgaria’s energy landscape, receives crude to sustain a processing capacity of about 190 thousand barrels per day. Since 1998 the plant has been under the ownership of the Russian state-controlled company Lukoil, which has invested substantially in modernization since the late 1990s. Those modernization efforts, totaling several billion dollars, have aimed to improve efficiency, reliability, and throughput to meet domestic demand and export opportunities within the region.
As of the close of 2023, Bulgaria stood among the top buyers of seaborne Russian oil, averaging over 100 thousand barrels of Russian crude per day. This position highlighted the country’s historical reliance on Russian supplies and underscored the significance of the 2024 shift in sourcing and policy. The transition is being monitored as Bulgarian buyers and policymakers adapt to new supply routes, price signals, and logistical considerations that accompany changes in global oil trade flows.
Industry observers have noted that the oil price outlook may evolve in the coming years. Some Citi analysts projected that oil prices could ease by 2025, a view that factors in global supply adjustments, demand trends, and the impact of sanctions and embargo-related movements across major markets. As Bulgaria recalibrates its import mix and refines its domestic fuel industry, market participants will be watching how price expectations, refinery utilization, and regional competition influence economic outcomes for the country and its trading partners.