Bulgarian fuel retailer Uni Energy is set to acquire NIS Petrol Bulgaria, the local subsidiary of Serbia’s Naftna Industrija Srbije (NIS), for more than €30mn, Serbian media reported on August 13.

NIS, majority-owned by Russia’s Gazprom and its subsidiary Gazprom Neft, is divesting its Bulgarian assets amid increasing pressure from secondary US sanctions. In July, NIS’s board approved the sale of its Bulgarian subsidiary, citing operational challenges. The company has also signalled a possible exit from Romania, where it currently operates 19 fuel stations.

The transaction, which is pending regulatory approval, would see Uni Energy take over a network of 23 operational petrol stations, 13 undeveloped plots and a fuel storage facility in Kostinbrod, near Sofia. The deal has been notified to Bulgaria’s Commission for Protection of Competition, which is currently reviewing the proposed acquisition.

As bne IntelliNews reported on August 11, Win Energy, operator of the Avia fuel station brand in Bulgaria and a partner of Uni Energy, will take over the Gazprom-branded chain of pumps. The deal is backed by Ivaylo Konstantinov, a former member of parliament from Bulgaria’s ruling GERB party and ex-owner of Union Ivkoni bus company.

If approved, the acquisition would expand the Avia network to over 40 locations nationwide, marking a significant step for the Swiss-Bulgarian joint venture comprising Uni Energy, TTN Commerce and Switzerland's Avia International.

"The company [NIS] continues to struggle with its operations in the country [Bulgaria]," NIS said in a statement in late July. In 2023, NIS Petrol Bulgaria posted revenue of just over BGN150mn (€75mn), a 31.4% drop year-on-year, according to Capital Insights. The unit has reportedly been operating at a loss in recent years.

The sale of NIS Petrol Bulgaria has attracted regional interest. According to Capital Insights, Serbia’s state-owned gas utility Srbijagas had also expressed interest in acquiring the Bulgarian arm. Its CEO, Dusan Bajatovic, previously hinted at a possible expansion into the Bulgarian and Romanian fuel retail markets.

Other potential bidders reportedly included EKO Bulgaria — backed by Greek parent company Motor Oil Hellas — and local fuel wholesaler GTA Petroleum.

The planned rebranding of Gazprom stations to Avia comes at a time of heightened scrutiny of Russian-linked energy assets in the Balkans. Concerns about US sanctions have prompted several regional players to reconsider their exposure to Russian-controlled entities. Serbia, a close ally of Moscow, has sought repeated extensions from Washington to delay sanctions on NIS, with the latest one-month reprieve granted last month.

The outcome of the regulatory review in Bulgaria will determine the timing of the acquisition and the rebranding of the Gazprom network.