The Petrotel refinery owned by the Russian group Lukoil under US sanctions, under extended supervision by the Romanian state since February 2026, will enter insolvency, according to the decision confirmed on Monday, August 24, in a response to Mediafax. The Petrotel refinery's activity was stopped in October last year for scheduled technical overhaul works, but was not resumed in the meantime, due to the international sanctions.

The Petrotel refinery owned by Lukoil used to provide 21% of the national fuel production and is the only one of the four on Romanian territory (including the smaller Vega refinery owned by Rompetrol Group) that is currently closed.

Petrotel Lukoil officials cited by Profit.ro said recently that they are working with the competent institutions of the Romanian state to restart the refinery as quickly as possible and that the supervisor appointed by the government in the context of the economic sanctions imposed by the US against the parent company has not suspended its payments.

The company explained that the insolvency procedure can provide the necessary legal framework to protect the industrial asset and resume operations, even in the context of OFAC restrictions, officials said.

"Petrotel Lukoil continues all legal and operational steps to restart the facilities and resume the refinery's activity. The company's priorities are to retain its entire workforce and all professional skills, protect relationships with Romanian suppliers and partners, continue its fiscal contribution and maintain a relevant asset for Romania's energy security," the statement said.

According to the cited source, in the current context, the company believes that the insolvency procedure can provide the necessary legal protection to preserve the activity, stabilise commercial relations and prepare for the relaunch of operations. The objective pursued is not to close the refinery, but to maintain its industrial capacity in a stable, predictable formula and compatible with the strategic interests of Romania and its European partners.

Petrotel Lukoil has been under extended supervision by the Romanian state since February 12, 2026.

However, the supervisor's duties are to comply with the imposition of OFAC sanctions. It does not have the power to suspend payments; moreover, it has never done so. 

"The refinery must enter the production process as quickly as possible and help Romania overcome this current situation on the fuel market," Petrotel Lukoil representatives told Profit.ro.

In turn, supervisor Bogdan Bugheanu conveyed that "the institution of the special supervisor is to deal exclusively with compliance with all special sanctions imposed by OFAC, and the common interest of all parties involved is for the refinery to restart as quickly as possible to support the fuel market, given the current situation."

iulian@romania-insider.com

(Photo source: Facebook/Rafinaria Petrotel Lukoil)