US Extends Deadline for Lukoil Asset Negotiations Amid Sanctions

The U.S. government has extended a deadline by one month for companies to negotiate with Russia's Lukoil regarding the purchase of its foreign assets, valued at approximately $22 billion. This decision comes following sanctions imposed last year to curb Moscow's financial capabilities amid the Ukraine conflict.

The U.S. Office of Foreign Assets Control has extended the deadline yet again for potential buyers to negotiate with Russia's Lukoil over its foreign assets, now setting the cutoff for May 1. This decision marks the fourth extension of the deadline initially set following sanctions imposed on the company last year.

These sanctions target Russia's substantial oil producers, Lukoil and Rosneft, in an effort to reduce Moscow's capacity to finance its military activities in Ukraine. Among the interested parties in acquiring Lukoil's foreign assets are well-known U.S. firms such as Carlyle, Exxon Mobil, and Chevron Corp.

The involvement of international investors, including Abu Dhabi's International Holding Company and Austrian financier Bernd Bergmair, adds a global dimension to the negotiations. Any deals reached will require official approval from the Office of Foreign Assets Control, as the former Trump administration had previously slowed asset sales to exert political leverage.

(With inputs from agencies.)