US has extended easing of sanctions on Lukoil’s foreign assets
The U.S. Department of the Treasury has extended until April 24, 2027, the general licenses that permit certain transactions involving foreign assets of the sanctioned Russian oil company Lukoil. The licenses apply to gas stations outside Russia and four of the company’s entities in Bulgaria.
According to Censor.NET, this is stated in a press release from the Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury.
The first general license applies to Lukoil International GmbH, which owns the Russian oil giant’s overseas assets, as well as companies in which it directly or indirectly holds at least a 50% stake. Among them are the U.S. subsidiaries Lukoil North America and Lukoil Americas Corporation.
The permit allows for the purchase of fuel and related products at Lukoil gas stations outside Russia, as well as for performing maintenance, keeping the stations operational, or gradually closing them.
Payments to suppliers, rent, and insurance premiums, as well as the payment of salaries to employees, are also permitted. OFAC explains that these exemptions are intended to protect consumers from the negative consequences of the sanctions.
At the same time, the license prohibits the transfer of funds to individuals or legal entities in Russia or to accounts at Russian banks. The exceptions do not apply to transactions involving the Central Bank of the Russian Federation, the Russian Ministry of Finance, and the National Welfare Fund.
Which businesses in Bulgaria are covered by the exemptions?
The second general license authorizes certain transactions with four Bulgarian entities of "Lukoil":
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нафтопереробним заводом Lukoil Neftohim Burgas;
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Lukoil Bulgaria;
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Lukoil Aviation Bulgaria;
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Lukoil Bulgaria Bunker.
The authorization also covers subsidiaries in which the specified companies hold a 50% or greater stake. However, it does not apply to other assets of the group that are subject to sanctions.
How many gas stations are covered by the easing of restrictions?
ЗAccording to Reuters estimates, the exceptions apply to Lukoil's network of approximately 2,000 gas stations in Europe, Central Asia, the Middle East, and North America.
Specifically, this involves approximately 200 gas stations in New York, New Jersey, and Pennsylvania, about 600 gas stations in Turkey, and more than 300 in Romania.
The company also holds a significant market share in the retail fuel market in Moldova and Bulgaria.
