Negotiations regarding the divestment of Lukoil’s international assets have received a significant extension, with the Office of Foreign Assets Control (OFAC) granting potential buyers additional time to engage in discussions until May 30. This decision reflects the intricate nature of the asset sale and underscores the regulatory complexities involved in such transactions.
The extension allows interested parties to further explore agreements concerning Lukoil International, based in Austria, and its majority-owned entities. It also facilitates operational continuity measures, which include maintenance activities and gradual wind-down processes associated with these assets, thereby ensuring stability during this transitional phase.
This marks the fifth time that the deadline has been postponed since sanctions were enacted by the US Treasury in October as a response to Russia’s military actions in Ukraine. The ongoing extensions highlight the complexity of the negotiations and indicate persistent interest from global investors aiming to penetrate vital energy markets.
Lukoil maintains a robust operational footprint in southeastern Europe, encompassing critical infrastructure such as the Lukoil Neftohim Burgas refinery—the sole refinery in Bulgaria—and the Petrotel refinery. Its extensive network includes fuel distribution channels across several countries, including Serbia, Croatia, Montenegro, Moldova, and North Macedonia, alongside multiple storage facilities that affirm its significant operational reach in this region.
<pIn April, US authorities also extended a license permitting Lukoil’s retail operations outside Russia—spanning over 800 locations in southeastern Europe—to continue functioning until late October. Additional authorizations encompass specific transactions involving its Bulgarian subsidiaries related to refining activities, aviation fuel supply, and bunker services, ensuring energy supply stability during this period.
Earlier this year, Lukoil disclosed plans to divest a substantial portion of its international portfolio, estimated at around $22 billion, to Carlyle. Other prominent energy corporations like ExxonMobil and Chevron have been identified as potential bidders for these assets, indicating intense competition and strategic interest in acquiring Lukoil’s operational holdings.
