Treasury extends limited sanctions relief for Lukoil International Gmbh
The license lets the Lukoil unit negotiate contracts through September 19, but any deal still needs separate approval from Washington.
Published
The Treasury Department's Office of Foreign Assets Control has extended a general license allowing Lukoil International Gmbh and its majority-owned subsidiaries to negotiate contracts and carry out related maintenance activities. The authorization runs through 12:01 a.m. Eastern on September 19, 2026, according to the OFAC document. Any resulting contract must be made contingent on receiving separate OFAC approval before it can take effect.
The license extends a line of relief that OFAC has renewed repeatedly since at least December 2025, through versions numbered GL 131 and its subsequent amendments, according to Baker McKenzie's sanctions tracker. Lukoil International Gmbh's sanctioned status traces back to October 22, 2025, when OFAC designated its parent, Public Joint-Stock Company Oil Company Lukoil, as part of an effort to press Russia's energy sector and limit funding for the war in Ukraine, OFAC says on its FAQ page.
OFAC says it is aware that Lukoil may be trying to sell off assets outside Russia to buyers not subject to sanctions, and that the general license is meant to support that kind of divestment while keeping revenue out of Moscow's hands. The license itself does not authorize any sale or transfer of Lukoil International Gmbh or its assets. OFAC has said any proposed sale would need to fully cut the buyer's ties to Lukoil, freeze funds owed to the company until sanctions are lifted, and avoid giving Lukoil any windfall through swaps of assets or shares.
The extension comes as the Treasury pursues a more selective approach to Russia. Treasury Secretary Bessent has pushed for dialogue to end the war in Ukraine and brought Russian delegates to the G20, a sign that the administration is willing to keep narrow economic channels open with Moscow even as it applies maximum pressure on Iran. The carve-out is small and does not amount to a policy reversal, but it points to a White House drawing a line between adversaries it wants to negotiate with and those it wants to isolate.