The United States has granted additional time for energy companies to complete agreements tied to the acquisition of foreign assets owned by Lukoil, extending the deadline until 27 June. The move follows a series of delays that began after Washington imposed sanctions on Lukoil and Russia’s state-controlled oil producer Rosneft last October. The sanctions were introduced amid concerns that revenues generated by the companies could contribute to Russia’s military operations in Ukraine.
Sanctions timeline and US approval requirements
Earlier this year, the administration of US President Donald Trump slowed the disposal process as part of broader efforts to maintain pressure on Moscow while negotiations aimed at ending the conflict in Ukraine continued. Under the current sanctions framework, transactions involving Lukoil’s foreign assets must ensure that the company receives no advance payment. Instead, proceeds from any sale are required to be deposited into blocked accounts under US jurisdiction.
All transactions also remain subject to final approval by the Office of Foreign Assets Control (OFAC) within the US Treasury Department. OFAC oversees and enforces sanctions measures, including ensuring that any agreement complies fully with US regulations before it can be finalized. This approval requirement applies to deals related to Lukoil’s foreign asset acquisitions.
Lukoil international portfolio up for sale
Lukoil has been seeking buyers for its international portfolio, which is estimated at approximately $22 billion. The portfolio includes oil fields, refineries, and fuel retail networks located across several countries. The sale of these assets is described as one of the largest ongoing transactions involving Russian energy holdings outside the country.
The disposal process has been adjusted over time since the sanctions were imposed in October. The latest extension keeps the deadline open for completing agreements related to foreign asset acquisitions tied to Lukoil. Any transaction structure would still need to follow the conditions on advance payments and blocked-account proceeds under US jurisdiction.
