US lifts some sanctions restrictions on overseas assets of Russia's Lukoil

The US Department of the Treasury has extended until 24 April 2027 the validity of general licences authorising transactions involving some of the overseas assets of sanctioned Russian oil company Lukoil.

Source: a notice from the US Department of the Treasury's Office of Foreign Assets Control (OFAC)

Details: According to the department, the licences cover Lukoil's petrol stations outside Russia and four Bulgarian entities, including an oil refinery in the city of Burgas.

The first licence governs the activities of Lukoil International GmbH, which holds the Russian oil giant's overseas assets. The authorisation also covers entities in which it holds a direct or indirect stake of 50% or more, including its US subsidiaries Lukoil North America and Lukoil Americas Corporation.

The licence allows customers to buy fuel and related goods at Lukoil petrol stations outside Russia. It also permits the provision of maintenance, measures to keep the stations operating or their gradual closure. OFAC said this move is intended to protect retail consumers from the adverse effects of sanctions. Permitted transactions include payments to suppliers, rent, insurance premiums and staff wages.

However, Washington has strictly prohibited the transfer of any funds to individuals or organisations in Russia or to accounts held with Russian banks. The licence also excludes any transactions involving the Central Bank of Russia, the Russian Finance Ministry or the National Wealth Fund.

The second general licence allows transactions involving four of the company's Bulgarian subsidiaries: the Lukoil Neftohim Burgas oil refinery as well as Lukoil Bulgaria, Lukoil Aviation Bulgaria and Lukoil Bulgaria Bunker. The exemptions also cover subsidiaries in which these entities hold a stake of at least 50%, but do not extend to other sanctioned assets belonging to the group.

According to Reuters estimates, the easing of restrictions covers a network of around 2,000 petrol stations across Europe, Central Asia, the Middle East and North America. These include around 200 stations in the US states of New York, New Jersey and Pennsylvania, 600 in Türkiye and more than 300 in Romania. Lukoil also holds leading positions in the retail fuel markets of Moldova and Bulgaria.

Background:

• On 22 October 2025, the US Department of the Treasury added Rosneft, Lukoil and 34 of their subsidiaries to its sanctions list. Washington said the decision reflected Moscow's unwillingness to take meaningful steps towards ending the war in Ukraine.
• In late October 2025, the Russian oil group announced plans to sell its foreign assets and agreed to sell Lukoil International to commodities trader Gunvor. However, the deal fell through after the US regulator refused to approve the transaction.
• On 10 December 2025, OFAC introduced a special licence allowing Lukoil's overseas assets to be sold to companies not subject to sanctions.
• On 14 April 2026, the US extended the licences allowing the company's foreign petrol station network and Bulgarian businesses to operate until 29 October 2026.
• In early October 2026, The New York Times posted a report saying that negotiations between Donald Trump's administration and the Kremlin had expanded to include discussions about a multi-billion-dollar deal involving Lukoil's international assets. According to sources, a group of investors with links to White House special envoys Steve Witkoff and Jared Kushner is seeking to acquire the portfolio of oil fields, refineries and petrol stations.

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