Putin rakes in extra €1B for his war chest via Bulgaria sanctions loophole

Politico: Bulgaria allowed millions of barrels of Russian oil to reach a local Russian-owned refinery, which then exported various refined fuels abroad including to EU countries. As a result, the Kremlin received an additional 1 billion euros and Lukoil almost 500 million euros because of a loophole in Bulgarian legislation. According to experts, this is not a direct violation of the sanctions. ” The sanctions regime is so Swiss-cheese-like that whatever we’re doing we’re always three months behind the Russians,” said an EU diplomat.

▪️ Under EU sanctions rules, Bulgaria cannot sell oil products abroad. But there’s a catch: Sofia can allow exports if those products are for “exclusive use” in Ukraine or “cannot be stored in Bulgaria due to environmental and security risks.” The latter is allowed provided that the “sale, supply, transfer or export is not intended to circumvent” sanctions. Between March and July 2023 alone, Bulgaria exported almost 3 million barrels of Russian-origin petroleum products by sea.

▪️ Bulgarian Finance Minister Asen Vasiliev said that the refinery has only a 10-day capacity reserve. He said sanctions relief would also help collect up to 250 million euros in taxes this year. Sofia “does not feel responsible for the Kremlin’s exports”. Nevertheless, the capacity of Lukoil’s local storage facilities is approximately equal to Bulgaria’s three-month oil demand, meaning that the possibility of exporting oil products for environmental reasons is unlikely.

The entire article can be read at the link https://www.politico.eu/article/how-russia-made-e1b-from-an-eu-sanctions-loophole-for-bulgaria/