OFAC extends deadline for Lukoil international asset sale to 25 July

The U.S. Treasury’s Office of Foreign Assets Control (OFAC) has granted another extension for negotiations on the sale of Lukoil’s non-Russian assets, pushing the deadline from 27 June to 25 July. This marks the latest in a series of short-term renewals of General License 131 (currently GL 131G), reflecting the complex and high-stakes nature of divesting one of Russia’s largest oil companies’ international portfolio under sanctions.

Lukoil came under U.S. sanctions in late 2025 as part of broader efforts to pressure Russia’s energy sector following the invasion of Ukraine. In response, the company announced plans to divest its international operations. The assets in question are held primarily through Lukoil International GmbH (LIG), an Austrian holding company, and include:

The Lukoil Neftohim Burgas refinery in Bulgaria (the country’s only oil refinery)
The Petrotel refinery in Romania
A network of over 800–2,000 fuel stations across Bulgaria, Romania, Serbia, and other Balkan and European countries
Upstream and other operations in multiple regions

Current status of the sale process

In late January 2026, Lukoil signed a non-exclusive agreement with the U.S. private equity firm Carlyle Group for the sale of most of its international assets (excluding those in Kazakhstan). The deal, valued by analysts at around $22 billion, remains subject to regulatory approvals, including a specific license from OFAC to close the transaction.

Lukoil strikes deal to sell international assets to Carlyle Group amid U.S. sanctions

Negotiations are reportedly ongoing with multiple interested parties, including major energy companies such as Exxon Mobil and Chevron, as well as other global investors. The OFAC license allows potential buyers to conduct due diligence, negotiate terms, and sign conditional (contingent) agreements, but does not authorize the actual transfer of assets or payment to Lukoil.

OFAC’s conditions and approach

OFAC has made clear that any final approval for a sale will be subject to strict conditions aimed at preventing any benefit to the sanctioned Russian entity:

Complete severance of ties between the assets and Lukoil
Blocking of any sale proceeds in a U.S.-jurisdictional account until sanctions on Lukoil are lifted
No upfront payments or structures that could provide a “windfall” to Lukoil
Requirement for buyers to obtain further OFAC approval for any significant future divestment of the assets

The repeated short extensions (this being at least the seventh) suggest that while the U.S. wants to facilitate the exit of Russian ownership from strategic energy assets in Europe and elsewhere, it is proceeding cautiously to ensure deals align with national security and foreign policy objectives.

Prospects and challenges

The extension provides breathing room for ongoing talks at a critical juncture. Carlyle’s involvement as a U.S.-based buyer is viewed as potentially more palatable from a regulatory standpoint than previous interested parties (such as Gunvor, whose bid was not approved). However, the process remains complicated by:

The scale and strategic importance of the assets (especially the Bulgarian and Romanian refineries)
Geopolitical sensitivities around energy infrastructure in Europe
The need for multiple layers of regulatory and commercial due diligence

For Bulgaria in particular, the future ownership of the Burgas refinery is of significant national interest. A successful sale to a Western or reputable international buyer could bring new investment and stability, while prolonged uncertainty risks operational and supply concerns.

The July 25 deadline is relatively short, indicating that OFAC expects tangible progress in the coming weeks. Market participants and analysts will be watching closely for any signs of a finalized deal or further extensions. A completed transaction would represent one of the largest forced divestments of Russian-owned energy assets in Europe to date, with wide-ranging implications for regional energy markets and the broader sanctions regime.

Caption: Cars line up at a Lukoil gas station in Moscow, Russia, 25 June 2026. The rising prices and sales limitations of fuel at some gas stations come as a result of repeated Ukrainian drone attacks on Russian oil infrastructure. Russian Presidential Spokesman Dmitry Peskov said on 22 June that the Russian government is taking measures to address fuel prices and remains in close coordination with oil companies. EPA/MAXIM SHIPENKOV