US extends deadline for Lukoil to negotiate international asset sale

The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has extended the license allowing negotiations for the sale of Russian oil company Lukoil’s international assets until November 21, 2026. The previous authorization was set to expire on October 22.

The new license covers Lukoil International GmbH and its controlled entities, permitting potential buyers to conduct financial, legal, and operational due diligence and sign conditional agreements. However, OFAC emphasized that “each transaction must be subject to a separate authorization,” meaning the extension does not constitute approval for a sale. The actual transfer of assets can only occur after receiving explicit permission from US authorities, and any funds owed to Lukoil must remain blocked in accounts under US jurisdiction.

This development follows US sanctions imposed on Lukoil and several subsidiaries in October 2025 due to the war in Ukraine. Lukoil has sought to divest its international business, valued at approximately $20–22 billion. Previous attempts to finalize sales failed to receive US approval, including a deal with commodity trader Gunvor and a January 2026 agreement with the Carlyle Group.