WASHINGTON: The US Department of the Treasury has extended licenses allowing certain transactions with Lukoil involving its foreign assets ...
WASHINGTON: The US Department of the Treasury has extended licenses allowing certain transactions with Lukoil involving its foreign assets from November 21 to December 13, despite sanctions imposed by Washington, according to general licenses published by the Treasury Department.
On October 22, the Department of the Treasury announced restrictions against Rosneft and Lukoil. It also published a number of general licenses then. According to these documents, until November 21, certain operations aimed at terminating interactions with companies and structures controlled by them were permitted.
According to the amended licenses, operations to purchase goods and services at Lukoil facilities outside Russia, as well as operations necessary to wind down their operations, are allowed until December 13. Transactions required for negotiations on the acquisition or transfer of Lukoil International GmbH, which owns Lukoil's foreign assets, are also permitted before the said deadline. The implementation of such agreements will require separate permission from the Office of Foreign Assets Control of the US Department of the Treasury.
Moreover, one of the licenses authorizes transactions related to Lukoil's subsidiaries in Bulgaria until April 29, 2026. This applies to Lukoil Neftohim Burgas JSC, Lukoil Bulgaria EOOD, Lukoil Aviation Bulgaria EOOD, and Lukoil Bulgaria Bunker EOOD.
On November 12, Reuters reported, citing sources, that Lukoil had asked the US Treasury Department to extend the licenses issued on October 22. According to the agency, Lukoil has made the request as it needs more time to fulfill existing obligations and consider proposals to sell its assets.
Lukoil’s representatives announced on November 14 that the company is negotiating the sale of its foreign assets with several potential buyers and will announce the deal after final agreements are reached and the necessary permits are received.
In October, the US and UK added Lukoil to their sanctions lists. After that, Lukoil announced that it intended to sell its international assets and that it had received an offer from the international oil trader Gunvor to acquire Lukoil International GmbH, which owns the Russian company’s foreign holdings. Gunvor then said it was withdrawing its offer to purchase Lukoil's foreign assets following a statement from the US Department of the Treasury that it would not grant Gunvor a license to conduct business or earn profit until the conflict in Ukraine was resolved. According to Bloomberg, governments in Europe and the Middle East are taking steps to preserve the operations of Lukoil's foreign assets. The publication noted that this applies, in particular, to Bulgaria and Moldova.
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