U.S. Clears Talks to Buy Lukoil Assets Amid Sanctions

The U.S. Treasury has opened the door for potential buyers to engage with Russia’s Lukoil over its foreign holdings, signaling a nuanced approach amid ongoing sanctions. While Lukoil has faced growing restrictions since the U.S. targeted its operations for funding Russia’s war in Ukraine, new licenses provide a carefully structured pathway for asset transactions—without benefiting the Russian government.

Under the latest authorizations, companies can negotiate deals through December 13, provided that any eventual purchase severs all ties with Lukoil and funds are placed in an escrow account inaccessible to the oil giant. Additionally, U.S. entities can conduct transactions involving Lukoil’s operations in Bulgaria, including the Burgas refinery, until April 29, 2026.

The move comes as the Bulgarian Energy Ministry praised the decision, describing it as the result of intensive diplomatic negotiations aimed at ensuring stability for citizens and businesses. The British Office of Financial Sanctions Implementation has mirrored the U.S. approach, allowing dealings with Lukoil Bulgaria EOOD and Lukoil Neftochim Burgas AD, the operator of Bulgaria’s sole oil refinery.

The Treasury’s licenses also extend to projects like the Caspian Pipeline Consortium and Tengizchevroil, which involve Russian oil companies but are critical to global energy flows. The CPC pipeline alone transports over 1.6 million barrels of crude per day, representing roughly 1.5% of global oil output.

Interest from global investors has already emerged. U.S. private equity firm Carlyle is reportedly exploring the purchase of Lukoil’s foreign assets and is preparing to seek Treasury approval before due diligence. Other potential bidders include Kazakhstan’s state-owned KazMunayGas and European oil majors such as Shell.

Lukoil’s international footprint is vast, spanning refineries across Europe, stakes in oilfields in Kazakhstan, Uzbekistan, Iraq, Mexico, Ghana, Egypt, and Nigeria, and hundreds of retail fuel stations worldwide, including in the U.S. Analysts estimate its global assets to be worth approximately $22 billion.

The Treasury emphasizes that while negotiations and binding memorandums of understanding are allowed under the new licenses, the final acquisition of any Lukoil asset requires a separate, explicit authorization, ensuring that transactions comply strictly with U.S. sanctions policy.