US and Russia discuss sanctioned Lukoil assets and energy deals

The Kremlin has confirmed that the United States and Russia are engaged in discussions regarding the future of sanctioned overseas assets belonging to the Russian oil giant Lukoil. These international holdings are valued at approximately $22 billion.

The discussions follow a meeting in St. Petersburg between Russian President Vladimir Putin and US special envoy Steve Witkoff. Kremlin foreign policy aide Yuri Ushakov stated that the two governments are reviewing various economic proposals and major projects as part of broader negotiations aimed at ending the conflict in Ukraine.

To facilitate these potential transactions, the US Treasury Department has extended the authorization for negotiations over the sale of Lukoil’s foreign assets until November 21. While the divestment is being described by Kremlin officials as a commercial matter, any sale would still require separate approval from the United States.

Other diplomatic considerations reportedly include the potential transfer of ownership of frozen Russian assets to the US, which could be used as leverage in energy diplomacy or as part of a compromise to restart pipeline exports to Europe.