License extension does not save: US sanctions have effectively paralyzed Lukoil’s international assets
4 December 21:04
The U.S. Treasury Department has extended the general license that temporarily exempts the Russian Lukoil’s network of gas stations abroad from sanctions. This was reported by the Office of Foreign Assets Control (OFAC), "Komersant Ukrainian" reports.
Why the US postponed sanctions for gas stations
Washington explains that the license extension is necessary to “mitigate harm to consumers and suppliers” who carry out standard operations with Lukoil’s retail gas stations.
The exemption will be valid until the end of April 2026 and allows the stations to continue operating despite the sanctions regime.
In fact, this means that retail chains operating in Europe, the US and a number of other countries are not subject to the restrictions.
Extensive assets despite sanctions pressure
“Lukoil remains one of the largest players in the Russian oil industry, with assets from Iraq to Kazakhstan and stakes in European refineries. The company owns a large network of gas stations in the United States, Belgium, Romania and other countries.
It was the scale of its market presence and participation in critical infrastructure that became an argument for a temporary permit to avoid disruptions in fuel supplies.
Despite the postponement, international business is at a standstill
Sanctions against Lukoil and Rosneft came into effect on November 21. Although the company’s gas stations were granted a temporary exemption, the US has already restricted the Russian group’s access to global financial transactions, which, according to analysts, effectively paralyzes its international business.
The blocking of operations for the supply, maintenance, and insurance of energy assets means that the company is unlikely to be able to support investments or large-scale external projects, even if some retail chains temporarily continue to operate.
