Lukoil Seeks Extension to Wind Down Operations After Sanctions
Russian oil company Lukoil has requested an extension from the U.S. Treasury Department to the deadline for ceasing operations following recently imposed sanctions, according to three sources cited by Reuters. The original deadline, set after sanctions were levied in late October, is November 21st.
Lukoil is seeking more time to fulfill existing contractual obligations and to continue evaluating potential buyers for its foreign assets, the sources stated.
The company announced plans to sell off its international holdings after the sanctions were put in place. Initial discussions with oil trading firm Gunvor fell apart after the U.S.Treasury signaled its opposition, citing Gunvor’s ties to Russia and stating it would not grant the company a license to operate while the conflict in Ukraine continues.
Following the failed gunvor deal, a competitive interest in Lukoil’s assets has emerged among European nations, Bloomberg reported. Several countries are now lobbying Washington to issue a license allowing Lukoil to continue operating beyond the November 21st deadline. Romania is considering acquiring Lukoil’s assets within its borders, and Moldovan authorities have offered to purchase the company’s infrastructure at Chisinau International Airport.
The Financial Times reports that Lukoil risks losing assets valued at 14 billion euros due to the collapse of the Gunvor agreement and the uncertain future of asset sales.
