US extends license for talks on Lukoil asset sales until Feb. 28

The U.S. Treasury Department on January 14 extended by more than a month — until February 28 — the period during which companies may engage in discussions with Russian energy giant Lukoil regarding the purchase of its foreign assets.

President Donald Trump imposed sanctions on Lukoil and Rosneft, Russia’s two largest energy companies, on October 22 as part of Washington’s broader effort to pressure Moscow over the war in Ukraine.

They were added to the “blacklist” under Executive Order 14024 for operating in the energy sector of the Russian economy. The department’s statement said that Rosneft and Lukoil were designated under Executive Order 14024 because they are engaged, or have been engaged, in activities within Russia’s energy sector.

In addition, the Office of Foreign Assets Control (OFAC) added Rosneft and Lukoil subsidiaries to the sanctions list.

Shortly afterwards, Lukoil moved to put its international holdings up for sale.

Those global assets—comprising oil fields, refineries, and an extensive network of retail fuel stations—are valued at roughly $22 billion and have attracted interest from a diverse pool of potential buyers, including the U.S. private equity firm Carlyle Group and a consortium involving Chevron and Quantum Capital Group.

The Treasury’s extension of the general license, previously set to expire on January 17, also permits prospective buyers to conclude contingent contracts for the sale of the assets and continue winding down associated work. This marks the second extension of the deadline, following the first granted in December.

Because of the U.S. sanctions, any final agreement involving Lukoil’s assets will require explicit approval from the Treasury Department.

Lukoil has been significantly affected by the sanctions, which have disrupted its overseas activities from Iraq to Finland. The company had requested a longer negotiation window to allow additional time to structure potential deals, sources previously told reporters.

By Tamilla Hasanova