The U.S. Office of Foreign Assets Control (OFAC) has prolonged until 25 July its general license that allows negotiations related to the sale of Lukoil international assets. The authorization was initially due to expire on 27 June, and OFAC has extended it again while talks continue. The measure provides additional time for potential buyers to remain in discussions with the Russian oil major.
The general license covers activities including negotiating the purchase of Lukoil’s overseas operations, signing conditional sale agreements, and taking steps needed to preserve asset value during the negotiation period. OFAC said the move represents the seventh extension since the license was first introduced after Lukoil was placed under U.S. sanctions following Russia’s invasion of Ukraine.
License scope for Lukoil international asset divestment
Lukoil said in October that it intended to divest a large portion of its international portfolio. Earlier reporting indicated a preliminary agreement with U.S. investment firm Carlyle covering assets valued at around $22 billion. Other energy groups, including Exxon Mobil and Chevron, have been mentioned as potential bidders.
Under the OFAC framework, interested parties can continue discussions and structure conditional transaction terms while maintaining measures aimed at protecting the value of assets. The repeated extensions indicate that OFAC is allowing negotiations to proceed beyond earlier deadlines tied to the authorization.
Lukoil downstream presence in Bulgaria and regional refining assets
Despite sanctions pressure, Lukoil remains active in Southeastern Europe’s downstream oil sector. Its regional holdings include Lukoil Neftohim Burgas, described as Bulgaria’s only refinery, along with the Petrotel refinery in Romania. The company also operates a retail network of more than 800 petrol stations.
The retail footprint spans Bulgaria, Romania, Serbia, Croatia, Montenegro, North Macedonia, and Moldova. These assets are part of the broader set of non-Russian operations referenced in OFAC-related authorizations tied to Lukoil’s international business.
Related OFAC authorizations for non-Russian operations
OFAC has extended additional authorizations connected to Lukoil’s non-Russian activities. One license is valid until 29 October and covers the company’s international fuel retail business. A separate approval also allows certain transactions involving Bulgarian subsidiaries.
The Bulgarian subsidiaries named include Lukoil Neftohim Burgas, Lukoil Bulgaria, Lukoil Aviation Bulgaria, and Lukoil Bulgaria Bunker. These permissions are intended to support specific transactions within the scope of Lukoil’s non-Russian operations while asset sale discussions continue under the general license.
