Negotiations regarding the divestment of Lukoil’s international assets have received a significant extension, with the Office of Foreign Assets Control (OFAC) allowing potential buyers additional time to engage in discussions until May 30. This extension reflects the complexities involved in the transaction and highlights ongoing regulatory scrutiny surrounding the sale.
The extension facilitates continued negotiations for the divestment of Lukoil International, which is based in Austria and includes majority stakes in various entities. Furthermore, it encompasses operational continuity measures, ensuring that maintenance and gradual wind-down activities related to these assets can proceed smoothly during this transitional phase.
This marks the fifth extension since sanctions were enacted by the US Treasury in October, a response to geopolitical tensions stemming from Russia’s actions in Ukraine. The repeated delays underscore both the complexity of the deal and persistent interest from international investors aiming to penetrate strategic energy markets.
Lukoil maintains a robust presence in southeastern Europe, operating critical infrastructure such as the Lukoil Neftohim Burgas refinery—the sole refinery in Bulgaria—and the Petrotel refinery. Its operations extend across fuel distribution networks in Serbia, Croatia, Montenegro, Moldova, and North Macedonia, along with multiple storage facilities, illustrating its significant operational footprint in the region.
<pIn April, US authorities further extended a license permitting Lukoil’s retail stations outside Russia—over 800 locations across southeastern Europe—to remain operational until late October. Additional authorizations also cover specific transactions involving its Bulgarian subsidiaries, including refining operations and aviation fuel supply services, contributing to energy supply stability in the region.
Earlier this year, Lukoil announced plans to sell a substantial portion of its international portfolio, valued at approximately $22 billion, to Carlyle. Other prominent energy firms like ExxonMobil and Chevron have been identified as potential bidders, indicating intense competition and strategic interest in acquiring these valuable assets.
