U.S. Grants Conditional Green Light for Lukoil Foreign Asset Deals

The U.S. Treasury has authorized discussions for the sale of Lukoil's foreign assets, conditional on severing all ties with the company, as sanctions on Russian oil firms continue. This move aims to support energy security for allies without benefiting the Russian government.

In a strategic move, the U.S. Treasury Department has provided conditional clearance for potential buyers to engage in discussions with Russia's oil giant, Lukoil, about purchasing its foreign assets. This announcement comes amid heightened sanctions intended to hamper Lukoil's support for Russia's actions in Ukraine.

According to the Treasury's directives, any transaction involving Lukoil's foreign assets must result in a complete severance of ties with the company. The funds from these transactions are to be placed in a secure escrow account inaccessible to Lukoil while sanctions remain active.

This decision follows Bulgaria's efforts to seize Lukoil's Burgas refinery, and the Treasury has granted transactions involving Lukoil entities in Bulgaria until 2026. These measures are designed to secure energy stability for U.S. allies, with the Treasury ensuring that they do not unintentionally benefit the Russian state.

(With inputs from agencies.)