US delays sanctions on Russian oil giant Lukoil, Bloomberg reports
The U.S. Treasury Department has delayed the implementation of sanctions against Russian oil giant Lukoil, allowing the company time to sell its international assets, Bloomberg reported on Nov. 14.
Lukoil entered negotiations to sell its foreign assets shortly before requesting that U.S. officials postpone sanctions.
Interest in Lukoil's overseas holdings has increased in recent days, with prospective buyers from the U.S., Europe, and the Persian Gulf seeking approval from the Treasury Department to engage with the company, Bloomberg reported, citing its undisclosed sources.
One option under discussion is a structure in which a primary buyer would acquire most of Lukoil's international assets, supplemented by several smaller transactions, according to Bloomberg.
The Trump administration has granted limited exemptions to sanctions for certain transactions involving Lukoil in order to facilitate cooperation with foreign governments and potential buyers regarding the company's international asset sales, the Treasury Department said.
The Treasury has also issued a license allowing specific transactions related to Lukoil's retail gas stations and contracts for selling its international assets through Dec. 13, Bloomberg reported.
An additional exemption was granted for deals involving Lukoil's Bulgarian subsidiaries, with sanctions on those entities postponed until April 29.
The U.S. announced sanctions on Russia's two largest oil companies, Rosneft and Lukoil, in October, in an effort to pressure Russian President Vladimir Putin into negotiations with Ukraine. The measures targeted not only the two firms but also 36 of their subsidiaries.
Following the announcement, several European countries that host Lukoil refineries began seeking ways to keep the facilities operational and avoid shutdowns.
In Bulgaria, the parliament authorized an appointment new management at the Lukoil refinery, with officials saying that the plant could be nationalized and later sold to new owners.
Romania, meanwhile, has reportedly asked Washington to postpone the sanctions and has moved to take control of Petrotel Lukoil, the company's Romanian subsidiary.
