The Trump administration has given clearance for potential buyers to engage in discussions with Russia’s Lukoil regarding the purchase of its foreign assets in Nigeria and other countries. This move allows for business dealings with Lukoil’s Burgas refinery, which has been at risk due to Bulgaria’s attempt to seize the plant.
Lukoil, one of Russia’s largest oil companies, has faced significant disruptions to its foreign assets since the US imposed sanctions last month. The sanctions were a response to Lukoil’s role in financing Russia’s ongoing conflict in Ukraine. The company’s international assets, valued at approximately $22 billion, include refineries in Europe, stakes in oilfields in Kazakhstan, Uzbekistan, Iraq, Mexico, Ghana, Egypt, and Nigeria, as well as hundreds of retail fuel stations worldwide.
The US Treasury Department has issued licenses allowing companies to negotiate with Lukoil about buying its foreign assets until December 13. However, any transaction would need to completely sever ties with Lukoil, and the funds from the sale would have to be placed in an escrow account that Lukoil cannot access while it remains under sanctions.
The move is seen as a step to support the energy security of US partners and allies without benefiting the Russian government. The Treasury Department has also granted licenses for transactions involving Lukoil entities in Bulgaria until April 29, 2026. Britain’s Office of Financial Sanctions Implementation has similarly granted licenses for Lukoil Bulgaria EOOD and Lukoil Neftochim Burgas AD.
Lukoil’s international assets include upstream oil and gas projects, refining, and fuel retail networks across Africa, Europe, Central Asia, the Middle East, and the Americas. The company produces around half a million barrels of oil per day outside of Russia, with operations in countries such as Iraq, Kazakhstan, and Azerbaijan. Its refining assets include the Neftohim Burgas refinery in Bulgaria, the Petrotel refinery in Romania, and a stake in the Zeeland refinery in the Netherlands.
The company’s fuel retail business spans several countries, including Finland, Moldova, and the United States, where it operates around 200 petrol stations in New Jersey, Pennsylvania, and New York. Lukoil has a significant retail presence in several other countries, including Turkey, Romania, and Bulgaria.
The development is significant as it paves the way for potential buyers to acquire Lukoil’s assets in Nigeria and other countries, which could have implications for the global energy market. The US move aims to balance the need to support its partners and allies with the need to maintain pressure on Russia over its actions in Ukraine.