U.S. extends waivers for sale of Lukoil's foreign business to Dec 13, transactions with assets in Bulgaria to April 29, 2026
MOSCOW. Nov 17 (Interfax) - The U.S. Treasury Department's Office of Foreign Assets Control (OFAC) has extended the deadline for completing transactions concerning the negotiation and entry into contracts for the sale of Lukoil International GmbH and related assets of Russian oil company Lukoil until December 13, 2025, OFAC said.
However, this is "provided the performance of any such contract is made expressly contingent upon the receipt of separate authorization from" OFAC, the agency said.
OFAC has also authorized transactions with Lukoil's Bulgarian companies Lukoil Neftohim Burgas JSC, Lukoil Bulgaria EOOD, Lukoil Aviation Bulgaria EOOD and Lukoil Bulgaria Bunker EOOD until April 29, 2026.
The United Kingdom imposed sanctions on Lukoil on October 15 as part of a major update to the Russian section of its sanctions list and set a deadline of November 29 for winding down all transactions with the company. The U.S. followed with sanctions of its own on October 22, issuing a license to wind down business with Lukoil by November 21. A number of the company's international projects were granted exemptions from the sanctions.
Soon after this, Lukoil announced plans to sell its international assets. It later emerged that Lukoil had received and accepted an offer to buy its international arm, Lukoil International GmbH, from commodities trader Gunvor. The key terms of the deal were agreed by the parties, but they could not proceed because the U.S. Treasury Department said it would not issue Gunvor a license to do business while the conflict in Ukraine continued. In light of this, Gunvor withdrew its offer.
Lukoil said on November 14 that it was holding negotiations on the sale of its international assets with several potential buyers. The company said it would aim to ensure the uninterrupted operation of these assets during their sale and transfer to new owners so as to "avoid the risks of disruptions in the work and supply of energy resources to the countries of presence, and save jobs."
Lukoil's international operations ran into problems as soon as the company was hit by sanctions. Among other things, the company declared a force majeure at the West Qurna 2 oil field in Iraq, its largest international asset.
Lukoil is involved in projects in Azerbaijan, Kazakhstan, Uzbekistan, Iraq, Egypt, Cameroon, Nigeria, Ghana, Mexico, the United Arab Emirates and Republic of the Congo, and has oil refineries in Bulgaria, Romania and the Netherlands. The company also has about 2,500 filling stations in 19 countries.
The UK Office for Financial Sanctions Implementation on Friday extended the license to conduct transactions with Lukoil's Bulgarian companies until February 14, 2026. The Russian company owns an oil refinery in Burgas and a chain of more than 500 filling stations in the country.
