Bucharest abandons temporary nationalisation and opts for a fast-tracked two-stage divestment to safeguard energy security. Romania has abandoned the option of temporarily nationalising the Lukoil-Petrotel refinery, concluding that the state lacks the approximately €200 million in immediate liquidity required to restart operations under public control. After weeks of political and technical debate, the government has instead opted for a rapid, two-stage sale process that will compel the Russian company to place its Romanian assets on the market through a state-supervised tender.
At the centre of the plan is the Petrotel refinery in Ploiești, regarded as the most sensitive component in the group’s Romanian portfolio due to its strategic importance. The facility covers roughly 20% of Romania’s fuel consumption, making its uninterrupted operation critical for national energy security. The government aims to adopt a regulatory act by 21 November that will allow the refinery to be put up for sale immediately, under state oversight, in an effort to avoid supply disruption and accelerate the transition to a new owner.
A second regulatory act, expected by 13 December, will define the transfer mechanism for Lukoil’s approximately 300 filling stations across the country. With the network spread nationwide and operating under varied contractual arrangements, Bucharest wants legal clarity to prevent procedural bottlenecks and ensure continuity in the market.
U.S. sanctions force rapid restructuring
The crisis stems from U.S. sanctions targeting Rosneft, Lukoil and dozens of affiliated entities, imposed on the grounds that Russia shows “a lack of serious commitment to a peace process that would end the war in Ukraine.” The U.S. Treasury’s decision obliges the group to wind down international operations by the end of November. For Romania, which hosts one of the few European Lukoil refineries and a large distribution network, the sanctions pose an immediate risk of supply instability. European companies that continue to work with the Russian group could face secondary sanctions – a factor already affecting financing, contracts and logistics.
Romanian officials had previously signalled that the state might intervene directly. President Nicușor Dan stated that a temporary takeover of the refinery was possible if necessary for energy security, noting that a short shutdown would not immediately affect supply but a long-term halt would require substantial increases in fuel imports. Energy Minister Bogdan Ivan also stressed that Romania must fully implement U.S. sanctions and avoid requesting an extension of the 21 November deadline, insisting that the state “must maintain full control over Lukoil’s domestic operations in order to safeguard market stability”. Political warnings over the financial burden
Not all political voices supported the idea of a state takeover. Former President Traian Băsescu warned that acquiring the Petrotel refinery would place a heavy burden on the public budget. He estimated annual operational costs at around USD 1.2 billion, arguing that refineries typically generate profit in the distribution stage rather than in the refining process itself. By contrast, he noted that the Lukoil filling stations operate under management and lease agreements with private operators and therefore do not present the same financial risk.
Additional concerns were raised by Economy Minister Radu Miruță, who stressed that although the refinery falls under the jurisdiction of the Energy Ministry, the broader economic impact – particularly on industrial competitiveness, remains significant. He warned that any sudden loss of fuel from the market could trigger speculation and price spikes, underscoring the need for coordinated action between the Energy and Finance Ministries. Miruță also highlighted previous cases where companies accumulated debts before abandoning their assets, stressing that the state must protect both the refinery’s value and its strategic production capacity.
A delicate transition ahead
Romania’s decision to abandon nationalisation and move towards a controlled and accelerated sale reflects both strategic caution and economic pragmatism. The government seeks to prevent market disruption while ensuring compliance with international sanctions and avoiding long-term fiscal exposure.
Over the coming weeks, the success of the two-stage plan will depend on the speed and clarity of the regulatory framework, the ability to attract credible buyers, and the capacity of the Romanian authorities to manage the transition without compromising national supply security.