The US extended sanctions exemptions for Russian Lukoil’s foreign assets: what the company was allowed to do

The US Treasury Department has extended until April 24, 2027 the validity of special licenses that allow certain operations with foreign assets of the Russian oil company Lukoil. The decision concerns a network of gas stations outside Russia and a number of enterprises in Bulgaria. At the same time, the main sanctions restrictions against the company remain in force.

This is reported by the Shelter publication with reference to the Office of Foreign Assets Control (OFAC) of the US Treasury Department.

The American authorities have extended the validity of two general licenses that provide exemptions from the sanctions regime to ensure the operation of certain enterprises of the Russian oil group abroad.

What operations were allowed for the Russian Lukoil

The first license applies to the company Lukoil International GmbH, which manages the international assets of the Russian oil giant.

The permit also covers enterprises in which this structure directly or indirectly owns at least 50% of the shares. In particular, these are the American companies Lukoil North America and Lukoil Americas Corporation.

According to the license, operations necessary for the operation of Lukoil gas stations outside Russia are permitted.

Among them:

Sale of fuel and related products at gas stations.
Settlements with suppliers.
Payment of rent for premises and land plots.
Insurance payments.
Payment of wages to employees.
Maintenance of gas stations.
Operations necessary for the gradual termination of the activities of individual facilities.

Such exceptions should ensure the continuity of the fuel infrastructure and minimize the negative consequences of sanctions for consumers.

What sanctions restrictions remain in force

Despite the extension of licenses, the US Treasury Department did not allow the Russian company to freely carry out all financial transactions.

In particular, it is prohibited to transfer funds to individuals and legal entities in Russia, as well as to accounts in Russian banks.

In addition, the permits do not apply to transactions involving:

The Central Bank of the Russian Federation.

The Ministry of Finance of the Russian Federation.

The National Welfare Fund of Russia.

Therefore, the decision of the American authorities does not mean the complete lifting of sanctions against Lukoil, but only provides for exceptions for certain types of activities.

The US has allowed transactions with Lukoil enterprises in Bulgaria

The second general license concerns four Bulgarian enterprises related to the Russian oil company.

The list includes:

Lukoil Neftohim Burgas – an oil refinery in Burgas.

Lukoil Bulgaria.

Lukoil Aviation Bulgaria.

Lukoil Bulgaria Bunker.

Exceptions also apply to subsidiaries in which the mentioned companies own a share of 50%.

At the same time, the license does not apply to other sanctioned assets of the group.

How many Lukoil gas stations can operate thanks to exceptions

According to experts, sanctions relief may cover about two thousand gas stations in different countries of the world.

In particular, the Russian company has a significant presence in the fuel markets of Europe, Central Asia, the Middle East and North America.

According to the data provided, the company’s network includes:

About 200 gas stations in the USA, mainly in the states of New York, New Jersey and Pennsylvania.

Approximately 600 gas stations in Turkey.

More than 300 gas stations in Romania.

In addition, Lukoil maintains a significant presence in the retail fuel markets of Moldova and Bulgaria.

Why the US extended the sanctions exemptions

The decision of the US Treasury Department is aimed primarily at maintaining the operation of foreign fuel infrastructure and protecting consumers from possible disruptions in fuel supplies.

At the same time, financial restrictions on transfers to Russia remain in force.

Thus, the United States allows individual foreign enterprises of Lukoil to continue their activities without lifting the general sanctions regime against the Russian oil company.

The validity period of the extended general licenses is set until April 24, 2027.

As a reminder, Ukraine continues to call on international partners to increase sanctions pressure on Russia, in particular on its energy sector, the revenues from which remain one of the sources of financing the Russian economy during the war.