US prolongs licence for Lukoil’s overseas asset sales

The US Department of Treasury (DoT) has extended its licence, allowing negotiations with Russian oil company Lukoil, for the sale of its international assets until 28 February.

IMAGE: Flags of the US, Russia and Ukraine. Getty Images

The US treasury department’s Office of Foreign Assets Control (OFAC) has extended the period for the sale of Lukoil International or any of Lukoil’s majority-owned subsidiaries, it said.

The general licence was initially due to expire on 17 January.

In October 2025, the US sanctioned Russia’s biggest oil producers – Rosneft and Lukoil – and their subsidiaries, following similar measures by the UK.

The move was in response to Russia’s invasion of Ukraine, now entering its fourth year.

Lukoil then announced intention to offload its international assets.

Two months later in December, the UK’s Office of Financial Sanctions Implementation extended its deadline, allowing transactions with Lukoil’s international business until 26 February.

Rosneft and Lukoil produce more than 5 million b/d of oil, according to market analysts.

By Aparupa Mazumder

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