US slows down sale of Lukoil assets to pressure Russia in peace talks - Reuters
Kyiv • UNN
The United States has slowed down the sale of international assets of Russian oil giant Lukoil to put pressure on Russia in peace talks on Ukraine. OFAC extended the deadline for concluding deals until April 1, and the next round of negotiations between the US, Russia, and Ukraine is scheduled for March.
The United States has slowed the sale of international assets of Russian oil giant Lukoil to pressure Russia in peace talks over Russia's war against Ukraine, citing four sources familiar with the discussions, Reuters reports, writes UNN.
Details
On Thursday, the US Office of Foreign Assets Control (OFAC) was to extend the deadline for concluding deals from February 28 to April 1, as shown in an OFAC document seen by Reuters.
US, Russian, and Ukrainian negotiators have not made a breakthrough in talks in Geneva, Abu Dhabi, and Miami in recent weeks on reaching a peace agreement in Ukraine, the publication notes. "These discussions included US sanctions against leading Russian oil producer, state-owned Rosneft, as well as against the second-largest producer Lukoil," three sources briefed on the meetings said.
The next round of talks between the US, Russia, and Ukraine is scheduled for March.
OFAC has already extended the deadline three times for potential buyers to negotiate with Lukoil over $22 billion in assets since Washington imposed sanctions on the two Russian oil companies in October.
A US official said the US Treasury Department extended the deadline to "facilitate ongoing negotiations with Lukoil and reach an agreement that supports President (Donald) Trump's efforts to deprive Russia of the revenues needed to sustain its war machine and achieve peace."
According to the official, any deal requires that Lukoil receive no upfront value, and all proceeds from the sale be placed in an account where funds are frozen and subject to US jurisdiction.
According to a separate source familiar with the matter, the sale could still be completed regardless of a peace agreement.
The sanctions forced the sale of Lukoil's international portfolio, which includes oil fields, refineries, and gas stations from Iraq to Finland. The sale attracted interest from more than a dozen bidders, ranging from US oil giant ExxonMobil to the former owner of Pornhub.
The Office of Foreign Assets Control (OFAC) has been handling the sale of Lukoil's assets, but the process has recently been expanded to include senior officials from the White House, the Treasury Department, and the US State Department, with Treasury Secretary Scott Bessent taking a more direct role, according to three sources.
Earlier this month, Ukrainian President Volodymyr Zelenskyy said his intelligence services informed him that Russian envoy Kirill Dmitriev offered the Trump administration a $12 trillion economic deal. This deal includes Lukoil's assets, which could further complicate the sale, according to a person familiar with the matter.
Several companies have signed agreements with Lukoil, including US private equity firm Carlyle Group, Saudi Midad Energy, and American billionaire Todd Boehly, who is partnering with investment bank Xtellus Partners and UAE fund Alliance Investment Partners.
A partnership between Chevron and Texas-based Quantum Capital Group is also in active negotiations for the portfolio but has not yet agreed on terms with Lukoil.