The U.S. Treasury Department’s Office of Foreign Assets Control has extended until Feb. 28 a license allowing negotiations for the sale of Lukoil International GmbH, the entity that owns Russian oil giant Lukoil’s foreign assets. The extension was reported by Interfax.
Any deal, however, must comply with U.S. national security and foreign policy interests, according to the terms of the license.
Use of blocked accounts permitted
Under the license, blocked accounts belonging to Lukoil’s foreign entities may be used for authorized transactions. These transactions must be incidental and necessary to maintaining or terminating the activities, contracts or other agreements of Lukoil International GmbH entities.
The transaction must fully sever all ties between Lukoil International GmbH and its parent company, Lukoil. Any funds owed to Lukoil International GmbH must remain blocked until sanctions are lifted, preventing the company from receiving revenue or other financial benefits from its former assets.
Global footprint and sanctions exemptions
Lukoil is involved in energy projects in Azerbaijan, Kazakhstan, Uzbekistan, Iraq, Egypt, Cameroon, Nigeria, Ghana, Mexico, the United Arab Emirates and the Republic of Congo. The company also owns refineries in Bulgaria, Romania and the Netherlands, as well as a network of about 2,500 gas stations across 19 countries.
Several of Lukoil’s international projects are exempt from sanctions, including production at Kazakhstan’s Tengiz and Karachaganak oil fields and operations related to the Caspian Pipeline Consortium.
