U.S. Extends License for Talks with Lukoil Amid Sanctions

The U.S. has extended the license for negotiations with Russia's Lukoil until June 27, despite sanctions. The sanctions, aimed at curtailing revenue used by Russia in the Ukraine conflict, require the sale of Lukoil's international assets, drawing interest from major companies. Transactions need U.S. approval.

The United States has extended a license allowing U.S. companies to negotiate with Lukoil, Russia's second-largest oil producer, until June 27. Announced by the U.S. Treasury Department on Thursday, this marks the sixth extension since sanctions were imposed on Lukoil and Rosneft last October.

These sanctions target revenue streams utilized by Russia to support its continued military presence in Ukraine. Lukoil has been compelled to sell its international asset portfolio, valued at roughly $22 billion, including oilfields and refineries spanning from Iraq to Finland. Notable interest has emerged from a range of bidders, including U.S. oil giant ExxonMobil.

Under the current guidelines, any purchase deal must ensure that Lukoil does not receive upfront payments, with proceeds placed in a U.S.-jurisdiction frozen account. Final transaction approval rests with the Treasury Department's Office of Foreign Assets Control.