US Extends Deadline on Lukoil Foreign Asset Sale Talks to May 30
US Treasury Department Extends Lukoil Asset Sale Deadline
By Timothy Gardner
Background on the Deadline Extension
WASHINGTON, April 29 (Reuters) - The U.S. Treasury Department on Wednesday extended by about a month a deadline for energy companies to strike deals to buy foreign assets of Russia's second-largest oil producer Lukoil, according to a post on its website.
The deadline has been pushed to May 30 from May 1.
Context: Sanctions and Asset Sale
Sanctions on Lukoil and Rosneft
In February, the Trump administration slowed the sale of Lukoil's international assets, valued at about $22 billion, as part of efforts to pressure Russia in Ukraine peace talks.
The U.S. has now extended the deadline about five times since imposing sanctions in October on Lukoil and state-owned Rosneft for the role their revenues play in supporting the more than four-year war in Ukraine.
Details of Lukoil's International Portfolio
The sanctions forced the sale of Lukoil’s international portfolio, which includes oilfields, refineries and gas stations from Iraq to Finland. The process has attracted interest from more than a dozen bidders, ranging from U.S. oil major ExxonMobil to the former owner of Pornhub.
Requirements for the Asset Sale
Payment and Approval Conditions
No Upfront Payment and Frozen Account
Any deal must ensure that Lukoil receives no upfront payment, with all proceeds placed in a frozen account under U.S. jurisdiction. Transactions also require final approval from the Treasury Department's Office of Foreign Assets Control.
(Reporting by Caitlin Webber; editing by Michelle Nichols)
