Lukoil has been granted additional time to negotiate the disposal of its international business after the US Treasury extended the relevant authorization until 19 September 2026. The extension provides another window for discussions with potential buyers and for entering conditional sale agreements. Any deal that is completed would still require separate US regulatory approval.
Authorization extension and conditions for any completed deal
The US Treasury’s extension keeps the disposal process active while negotiations continue. Lukoil can pursue conditional sale agreements during the extended period. However, the company would still need separate clearance from US regulators before a transaction can be finalized.
Sanctions pressure and scope of international assets
Lukoil has sought to divest foreign operations since sanctions were imposed in October 2025, which complicated its ability to manage and finance the portfolio. The international assets include refineries in Bulgaria, Romania and the Netherlands. The portfolio also covers around 2,500 filling stations across 19 countries.
In addition to downstream assets, Lukoil holds upstream interests in Azerbaijan, Kazakhstan, Uzbekistan, Iraq and Egypt. The company’s disposal efforts therefore involve a geographically diverse oil and gas footprint. The authorization extension does not change the need for US regulatory approval for any completed transaction.
Previous failed bid and ongoing regulatory review
The disposal process has already encountered obstacles. An earlier transaction involving commodities trader Gunvor failed to secure the necessary approval. After that outcome, Lukoil reached an agreement with US investment group Carlyle in early 2026.
The Carlyle transaction remains subject to regulatory clearance. The extension adds time for negotiations but does not remove the requirement for approval steps tied to US oversight. Lukoil’s international asset sale efforts continue under the extended authorization period.
Accounting impact from sanctions-driven exit
The sanctions-driven exit has also resulted in a substantial accounting impact for Lukoil. The company has written down the value of its international operations by around €18 billion. The write-down reflects deterioration in asset valuations and increased uncertainty around transactions.
The extended authorization keeps negotiations underway without resolving the central challenge of securing a buyer structure acceptable to US authorities. It also does not address issues linked to transferring a strategically sensitive portfolio spanning multiple countries and business segments.
