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U.S. Grants Lukoil More Time to Unwind Foreign Assets as Sanctions Bite

Washington granted a brief reprieve to help the Russian oil major seek compliant buyers after nixing a proposed Gunvor purchase.

Overview

  • Treasury extended Lukoil’s divestment deadline from November 21 to December 13, though analysts say closings may take longer than 30 days.
  • Iraq’s SOMO stopped loadings and payments from the West‑Qurna‑2 field, where Lukoil holds 75 percent, leading the company to declare force majeure.
  • The U.S. blocked a planned asset sale to trader Gunvor, labeled by Treasury as tied to the Kremlin, prompting the buyer to withdraw.
  • Financial and state actions widened: Finnish banks froze payments to Lukoil’s Teboil, and Bulgaria moved to assume control of the Burgas refinery to keep it operating.
  • Roughly $14 billion in overseas subsidiaries are at risk, with analysts noting Lukoil’s seaborne export model leaves it more exposed than pipeline‑reliant Rosneft.