Money Laundering Reforms, Oil Security Challenges, and EU Rule of Law Pressure – Azat TV

Bulgaria’s Anti–Money Laundering Push Nears Critical Milestone

In the heart of Sofia’s government district, the mood is one of cautious optimism. Justice Minister Georgi Georgiev recently announced that Bulgaria is inching closer to full compliance with the Financial Action Task Force (FATF) standards, a key step toward shedding its reputation as a haven for illicit financial flows. The country received 40 FATF recommendations in 2023, prompting a detailed action plan with 25 targeted measures. As of October 2025, 22 of these have been fulfilled—a significant achievement in a region often criticized for lagging on transparency and enforcement (Reuters).

This progress isn’t just about paperwork. Georgiev emphasized that Bulgaria’s Parliament has passed landmark legislative reforms, including amendments to the Penal Code and the Criminal Procedure Code. These changes criminalize terrorism more clearly, hold companies accountable for benefiting from crime, and introduce tougher asset confiscation rules. Investigators and prosecutors have undergone intensive training on new money-laundering procedures, reflecting a whole-of-government approach.

But the clock is ticking. The Justice Ministry is racing to finalize the last legislative tweaks, particularly on imposing precautionary measures. Georgiev believes that, if momentum holds, Bulgaria could start the process of exiting the FATF “grey list” as early as January 2026. This would be more than a bureaucratic victory—it could unlock investment, improve Bulgaria’s standing in the EU, and reassure partners that the country is serious about combating organized crime.

European Commission officials, such as Ugo Bassi, have publicly praised Bulgaria’s reforms but stress that implementation is everything. The July adoption of the third and final legislative package aligned national laws with global standards, extending deadlines to meet Council of Europe MONEYVAL recommendations. For Bulgaria, the next three months are crucial—a final push before international evaluators return.

Oil Reserves Under Scrutiny as US Sanctions Bite

Just as Bulgaria’s financial sector eyes a fresh start, the country’s energy security has come under the spotlight. The US announced new sanctions on Russian oil giants “Lukoil” and “Rosneft” on October 22, directly affecting Bulgaria’s only oil refinery in Burgas, operated by “Lukoil”. The timing couldn’t be worse. With winter approaching, concerns over fuel supplies and national reserves have become urgent.

Martin Dimitrov, MP from “Continuing Change – Democratic Bulgaria”, has called for an immediate government inspection of Bulgaria’s mandatory oil reserves. Speaking on BNT’s “Speak Now”, Dimitrov demanded transparency: “Ministers must report whether mandatory oil reserves are available. If not, what immediate measures have they taken?” The energy expert assured that reserves are secured until year-end, but pressed for specific data and public accountability.

Energy Minister Zhecho Stankov responded that the government has a clear plan and fuel supplies are guaranteed until the end of 2025. Yet, uncertainty remains. Experts warn Bulgaria has until November 21 to decide on measures for the refinery; after that, “Lukoil” may be unable to operate with its partners due to the sanctions regime. Dimitrov also floated the idea of finding a reputable Western investor for the refinery, a move that could both stabilize the sector and signal Bulgaria’s commitment to EU energy norms (BNT).

For now, the debate is intense and the stakes high. Bulgaria’s reliance on a single refinery highlights vulnerabilities in its energy infrastructure—vulnerabilities that could be exploited if political or economic crises deepen.

European Liberals Sound Alarm Over Rule of Law and Political Arrests

As Bulgaria works to clean up its financial system and secure its energy future, another challenge looms: the integrity of its democratic institutions. The Congress of the Alliance of Liberals and Democrats for Europe (ALDE), meeting in Brussels, adopted a resolution condemning what it called “political arrests, politically motivated prosecutions, and the erosion of the rule of law in Bulgaria.” Representatives from the Continue the Change (CC) party, including leader Assen Vassilev, attended and endorsed the call for action.

The ALDE resolution urged member parties to raise the issue in national parliaments and seek hearings with foreign ministers. More dramatically, it recommended temporarily suspending payments under Bulgaria’s EU Recovery and Resilience Plan until all political prisoners are released. A fact-finding mission is being organized to assess the situation on the ground.

ALDE’s concerns were echoed in the European Parliament, where group leader Svenja Hahn warned, “If we lose democracy in Bulgaria, we lose Bulgaria itself.” The debate, spearheaded by the Renew Europe group, centered on alleged attacks on democratic institutions and judicial independence. The message from Brussels is clear: Bulgaria’s progress on paper must be matched by real change in practice (BTA).

Regional Cooperation: Bulgaria in International Military Exercises

Amid domestic turbulence, Bulgaria remains engaged in international security efforts. The country is participating in the “Nusret-2025 Invitation Exercise” in Türkiye, alongside naval and air forces from NATO, Türkiye, and observers from 19 countries. The exercise aims to enhance mine warfare capabilities and deepen cooperation among allied navies.

Bulgaria’s role in such exercises signals its ongoing commitment to regional security and NATO standards, even as it faces internal challenges. For Bulgarian defense planners, interoperability and readiness are crucial, especially given evolving threats in the Black Sea and wider region (News.az).

What’s Next for Bulgaria?

Bulgaria’s crossroads moment is defined by three intersecting pressures: cleaning up its financial sector to rejoin the international mainstream; securing its energy supplies in the face of geopolitical shocks; and defending its democratic institutions under EU scrutiny. Each challenge is formidable on its own. Together, they test the resilience of Bulgaria’s leadership and its capacity to reform.

The coming months will be decisive. Success in exiting the FATF “grey list” could restore investor confidence and catalyze broader reforms. Effective management of oil reserves and the refinery question will be crucial for economic stability. Meanwhile, addressing rule of law concerns is not just about EU funding—it’s about Bulgaria’s place in Europe as a credible, democratic partner.

While Bulgaria’s government has made tangible progress on anti–money laundering and legislative reforms, the pressure from international partners—especially on energy security and rule of law—remains intense. Real change will require not just compliance, but transparency and sustained political will, especially as economic and democratic stakes rise in the months ahead.