The US Department of the Treasury has extended the deadline for sanctions against the Russian oil company Lukoil to take effect, allowing the company to carry out transactions related to the sale of its international assets.

Source: Bloomberg

Quote: "The Trump administration extended a sanctions waiver for some Lukoil PJSC transactions as it steps up engagement with foreign governments and potential buyers over the Russian oil firm's international assets."

Details: The US Treasury has issued a licence for certain operations related to the company's retail petrol stations and contracts for the sale of its international assets until 13 December, Bloomberg notes.

An exception has also been made for transactions involving Lukoil's subsidiaries in Bulgaria – sanctions have been postponed until 29 April, the report says.

Meanwhile, anonymous Bloomberg sources stated that interest in purchasing Lukoil's foreign assets has grown in recent days. Potential buyers from the United States, Europe and the Persian Gulf have approached the Treasury for permission to cooperate with the company.

One of the options under consideration foresees a main buyer acquiring most of the international assets, along with several smaller deals, Bloomberg reports.

Lukoil holds stakes in oil refineries in Europe, as well as major assets in oil fields stretching from Iraq to Kazakhstan. Its brand also extends to petrol stations from the United States to Belgium and Romania, the agency notes.

Background:

• As previously reported, the United Kingdom suspended sanctions on the Russian company Lukoil in relation to Bulgaria, allowing the operation of its oil refinery in the Bulgarian city of Burgas.
• Earlier, the United States imposed sanctions on Russia's largest oil companies, Rosneft and Lukoil, as well as their subsidiaries. Meanwhile, the European Union formally adopted its 19th sanctions package against Russia on Thursday via written procedure.
• Swiss trading house Gunvor announced that it is withdrawing its bid to purchase the international assets of Russia's largest private oil company after the US stated it would "never" approve the deal.
• American investment firm Carlyle is exploring options for purchasing Lukoil's foreign assets, which have come under sanctions. However, the company has not yet made a decision and continues to consider potential acquisition scenarios.
• The Russian oil giant Lukoil has said it is in talks with potential buyers of its foreign assets following sanctions from the United Kingdom and the United States, as well as the collapse of the deal with Gunvor.

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