The United States is delaying the sale of Lukoil’s international assets to increase pressure on Russia during peace talks about Ukraine, as reported by four sources. The U. S. Office of Foreign Assets Control (OFAC) will extend the deadline for completing deals from February 28 to April 1, according to an OFAC document.
U. S., Russian, and Ukrainian officials have struggled to reach a peace agreement in recent talks in Geneva, Abu Dhabi, and Miami, which included discussions on U. S. sanctions against Russia’s major oil companies, Rosneft and Lukoil. Another round of talks is planned for March. OFAC has already extended the deadline to negotiate the sale of Lukoil’s $22 billion international assets multiple times since sanctions were imposed in October.
A U. S. official stated that the extension aims to help negotiations with Lukoil while depriving Russia of funds needed for its military operations. Lukoil must not receive any initial payments, and sale funds must be frozen under U. S. control. However, a sale can still happen regardless of a peace deal. Lukoil’s assets are appealing, attracting interest from various bidders, including ExxonMobil and other companies.
Senior officials from the White House, Treasury, and State Department are now more involved in the sale process. Reports also suggest that Russian envoy Kirill Dmitriev proposed a $12 trillion economic deal tied to Lukoil, complicating the sale further. Several companies, including Carlyle Group and Chevron, have made agreements with Lukoil but have not finalized terms.
With information from Reuters
