The U.S. Office of Foreign Assets Control (OFAC) has extended until 25 July a general license that permits negotiations related to the sale of Lukoil’s international assets. The authorization was originally due to expire on 27 June, and OFAC has prolonged it again while talks continue. This is the seventh extension since the measure was introduced after Lukoil was placed under U.S. sanctions following Russia’s invasion of Ukraine.
The license covers steps that interested parties can take while discussing potential transactions. It allows negotiations over the purchase of Lukoil’s overseas operations, the signing of conditional sale agreements, and actions intended to preserve the value of assets during the negotiation period. The authorization is designed to provide time for discussions to progress without ending the permitted activities.
Divestment plans and potential bidders for international assets
Lukoil said in October that it intended to divest a large portion of its international portfolio. Earlier reporting indicated the company had reached a preliminary agreement with U.S. investment firm Carlyle for assets valued at around $22 billion. Other major energy groups, including Exxon Mobil and Chevron, have also been linked as possible bidders.
OFAC’s continued authorization keeps negotiations within the scope of permitted activity as buyer discussions remain ongoing. The extension provides additional time for parties considering participation in any sale process involving Lukoil’s non-Russian operations.
Lukoil downstream footprint across Southeastern Europe
Despite sanctions pressure, Lukoil remains active in Southeastern Europe’s downstream oil sector. Its regional assets include Lukoil Neftohim Burgas, described as Bulgaria’s only refinery, along with the Petrotel refinery in Romania. The company also operates a retail network of more than 800 petrol stations.
The petrol stations are located across Bulgaria, Romania, Serbia, Croatia, Montenegro, North Macedonia, and Moldova. These holdings place Lukoil’s non-Russian operations at the center of regional fuel supply and retail activity.
Additional OFAC authorizations covering non-Russian operations
OFAC has also extended related authorizations tied to Lukoil’s non-Russian business lines. One license is valid until 29 October and covers the company’s international fuel retail business. A separate approval allows certain transactions involving its Bulgarian subsidiaries.
The Bulgarian subsidiaries named in the approval include Lukoil Neftohim Burgas, Lukoil Bulgaria, Lukoil Aviation Bulgaria, and Lukoil Bulgaria Bunker. These extensions run alongside the general license that supports negotiations over the sale of Lukoil’s international assets .
