Bulgarian Central Bank Reviews Impact of U.S. Sanctions on Russian Energy Firms

Jerusalem, 23 October, 2025 (TPS-IL) -- The Bulgarian National Bank (BNB) announced on Thursday that it is conducting a review and analysis of the potential consequences for the country’s banking system stemming from U.S. sanctions imposed on Russian energy companies Rosneft, Lukoil and their subsidiaries.

The BNB stated that, at a systemic level, no direct credit risk has been identified that could affect the stability of Bulgaria’s banking system.

From an economic standpoint, the entities in Bulgaria potentially affected by the sanctions are among the country’s significant business operators, whose financial flows are serviced by the banking sector, the central bank said.

According to the announcement made by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC), certain activities and existing contractual relationships are subject to a transitional (wind-down) period, regulated by a general license, which allows the settlement of current obligations within a specified timeframe, the BNB said.

In this context, and in strict compliance with the applicable European and national legal frameworks — including provisions related to international sanctions and anti-money laundering measures — as well as with their internal rules and procedures, credit institutions will independently make decisions regarding their contractual relationships with potentially affected clients, the central bank said.

This will be done based on an assessment of the risks associated with establishing or maintaining business relationships, in accordance with the requirements of the Anti-Money Laundering Measures Act, and taking into account the possibility of secondary sanctions being applied to persons or institutions that violate OFAC regulations.

The central bank also said it is in tight coordination with the Ministry of Finance and other competent national authorities in assessing the impact of the sanctions and in taking appropriate measures where necessary.

The BNB continues to monitor the situation closely, maintaining active communication with national and international institutions, and will inform the public if circumstances arise that require additional actions or clarifications, the statement added.

The sanctions imposed by the United States on Lukoil will not affect the operations of the refinery in Burgas, and Bulgaria has one month to decide how to proceed, Prime Minister Rosen Zhelyazkov said upon arriving to attend the European Council meeting in Brussels.