US allows some Lukoil sale-related transactions until April
TL;DR
The U.S. has extended the deadline for Lukoil asset sale negotiations to April 2026, allowing transactions under specific licenses to support sanctions aimed at cutting Russian war revenue while ensuring orderly sales.
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US allows some Lukoil sale-related transactions until April
U.S. Extends Lukoil Asset Sale Transactions Until April Amid Sanctions Efforts
The U.S. government has extended the deadline for negotiations involving Lukoil's international assets from February 28 to April 1, 2026, as part of broader sanctions efforts targeting Russian energy revenue. This extension, announced by the Treasury's Office of Foreign Assets Control (OFAC), marks the fourth delay since October 2025, when sanctions were imposed on Lukoil and Rosneft, Russia's two largest oil producers.
The asset sale, valued at approximately $22 billion, includes oilfields, refineries, and retail stations across 15 countries, from Iraq to Finland. OFAC has authorized transactions under General License 131A, which permits maintenance and wind-down activities for Lukoil International GmbH (LIG) entities until January 17, 2026, and General License 128B, which extends operational permissions for retail gas stations outside Russia until April 29, 2026. These licenses explicitly prohibit fund transfers to Russian entities and require that sale proceeds be held in U.S.-controlled accounts.
A Treasury official stated the extension aims to "facilitate ongoing negotiations with Lukoil and to reach a deal that supports efforts to deprive Russia of revenue for its war machine." Any agreement must ensure Lukoil receives no upfront payment, with proceeds frozen under U.S. jurisdiction. Potential buyers include major oil firms like ExxonMobil and other international bidders.
The process has drawn heightened attention from senior U.S. officials, including Treasury Secretary Scott Bessent, as part of broader diplomatic efforts to influence peace talks between the U.S., Russia, and Ukraine. Recent discussions, including a proposed $12 trillion economic deal involving Lukoil assets, highlight the complexity of the negotiations.
OFAC's actions reflect a strategic balance between pressuring Russia and ensuring orderly asset transitions. Non-U.S. entities may rely on the licenses for transactions consistent with their terms, provided no funds flow to Russia. The next round of U.S.-Russia-Ukraine talks is scheduled for March 2026.
This development underscores the intersection of sanctions policy and geopolitical diplomacy, with Lukoil's assets remaining a focal point in efforts to constrain Russian war financing.
