UK extends sanctions waivers for Lukoil international subsidiaries

The UK has extended its sanctions waivers for Russia's Lukoil international subsidiary, including its Bulgarian assets, HM Treasury said.

A new general license published by the Office of Financial Sanctions Implementation Aug.12 exempts Lukoil International GmbH from sanctions on the Russian parent company, effective until Feb. 26, 2027. The previous license was about to expire on Aug. 25.

Separately, HM Treasury issued a waiver for the Bulgarian subsidiaries of Lukoil, which was about to expire on Aug. 13, extending it until Oct. 29. The list of Bulgarian subsidiaries includes Bulgarian retail arm Lukoil Bulgaria EOOD, its refining business Lukoil Neftohim Burgas, as well as Lukoil Aviation Bulgaria and Lukoil Bunker Bulgaria.

The waivers allow Lukoil subsidiaries to avoid transaction bans and continue their operations. Under June 19 amendments, OFSI authorized Lukoil International and its subsidiaries to receive funds, but stressed that this does not mean the money can be transferred to the parent company.

Bulgaria's Deputy Prime Minister and Minister of Economy, Alexander Pulev, said Aug. 13 at a media briefing that the UK license extension prevented a deficit in the fuel market in the country and a shock price increase for consumers.

"This is the result of consistent actions of the government in the face of severe inherited problems, geopolitical pressure and strong fuel price volatility," Pulev's statement was quoted on the economy ministry's website.

Bulgaria will now focus on negotiations for the renewal of the license waiver with the US, the Deputy Prime Minister said. The US sanctions waiver for Lukoil's Bulgarian subsidies, as well as retail stations outside of Russia, is valid until Oct. 29.

Lukoil and Rosneft, another Russian oil major, were sanctioned by the US and UK in October 2025. Lukoil's international subsidiaries have required special licenses from the US and UK to maintain their operations and negotiate with potential buyers regarding the sale of the assets.

The US license to continue negotiations on the sale of Lukoil's international assets will expire on Aug. 22.

In January 2026, Lukoil signed an agreement with the US investment firm Carlyle to sell its international subsidiary. Carlyle confirmed the arrangement, adding that it is subject to the company's due diligence and regulatory approvals from the US Treasury Department.

Lukoil's international portfolio includes Kazakhstan's Karachaganak and Tengiz projects, the Shah Deniz project in Azerbaijan, and the West Qurna 2 project in Iraq, as well as upstream assets in Egypt, Cameroon, Nigeria, Uzbekistan, Ghana, Mexico, the UAE, and Republic of Congo. In Romania, Lukoil also holds the EX-30 Trident exploration permit in the Black Sea.

Lukoil said the Carlyle agreement does not include the company's stakes in Kazakhstan, which will remain part of Lukoil and continue operating under their respective licenses. The US issued a separate sanctions waiver for Lukoil's Kazakh projects valid until Oct. 14, 2027.

In addition, the Russian company has stakes in a retail network of fuel stations across Central and Eastern Europe and in Bulgaria's Neftohim Burgas refinery, Romania's Petrotel, and the Zeeland facility in the Netherlands, with a combined processing capacity of 400,000 barrels/day.

Despite formally remaining part of Lukoil's international subsidiary, Bulgaria's 190,000 barrels/day Neftohim Burgas refinery is now controlled by an external administrator. However, the Bulgarian government said in June that it does not plan to nationalize the refinery.

"The refinery will continue to operate. We guarantee the continuity of deliveries. We limit the risk of deficits and market shocks," Pulev said Aug. 13.

The Burgas refinery has contracted oil until the end of September and is negotiating contracts until the end of October, Lukoil Special Commercial Manager Evgeni Simeonov said at the same media briefing Aug. 13.

"All oil is bought by world giants. We do not buy and will not buy oil from sanctioned companies," Simeonov said, adding that the refinery's runs are at their highest in the past five to six years.