US extends deadline for Russia’s Lukoil to sell international assets

The US is providing more time for the sale of Lukoil's international assets, but is requiring that any sale get authorization from the Department of Treasury.

The Russian oil company is seeking to sell its international assets after being hit with US sanctions that are set to take effect Nov. 21. The US license issued Nov. 14 provides a waiver until Dec. 13.

Guvnor Group had planned to buy Lukoil's global portfoio but withdrew its proposal Nov. 6 after Treasury said it would block the deal.

Treasury called the Swiss trading company "the Kremlin's puppet" in a post from its official X account, and said that it would "never get a license to operate and profit" as long as Russian President Vladimir Putin continues "senseless killings" in Ukraine.

The new US license allows transactions that are necessary to negotiate or enter contracts for the sale or transfer of Lukoil International GmbH.

Such transactions are authorized through 12:01 am Eastern on Dec. 13, "provided that the performance of any such contract is made expressly contingent upon the receipt of authorization from the Office of Foreign Assets Control," the license said.

Treasury also issued a waiver for transactions related to the Caspian Pipeline Consortium, Tengizchevroil and Karanganak projects in Kazakhstan in which Lukoil holds a stake. The license does not authorize transactions for the sale of these projects.

Treasury issued licenses allowing transactions, maintenance, and the wind-down of Lukoil service stations outside of Russia through Dec. 13, provided that any payment to a blocked person is deposited into a blocked account.

Lukoil operates a retail network of some 2,000 fuel stations across Central and Eastern Europe.

Treasury also issued a license allowing Lukoil's Bulgaria subsidiaries to operate through April 29. The waiver applies to Lukoil Neftohim Burgas JSC, Lukoil Bulgaria EOOD, Lukoil Aviation Bulgaria EOOD and Lukoil Bulgaria Bunker EOOD.