US Treasury extends Lukoil sanctions exemption until April 2027
The US Treasury Department extended its sanctions exemption for Russian oil company Lukoil, allowing the company's branded gas stations outside Russia — including those in the US and Bulgaria — to continue operating until April 24, 2027. The move comes one week after President Donald Trump announced a deal for Russian diesel fuel supplies to US and global markets, which drew bipartisan criticism in Washington and condemnation from EU foreign ministers.
Key points
- US Treasury on Thursday extended sanctions exemptions for Lukoil until April 24, 2027.
- The exemption covers Lukoil-branded gas stations outside Russia, including networks in Bulgaria operated by Lukoil Neftohim Burgas, Lukoil Bulgaria, Lukoil Aviation Bulgaria and Lukoil Bulgaria Bunker.
- The new license retains restrictions on transferring funds to persons or accounts in Russia.
- The decision follows Trump's announced deal for Russia to supply 300,000 tons of diesel immediately, with 500,000 tons in November and one million tons later.
- The deal drew bipartisan US criticism and condemnation from EU foreign ministers as undermining transatlantic unity while Russia intensifies attacks on Ukraine.
- US sanctions on Lukoil and Rosneft were imposed in October 2025; Lukoil has since sought buyers for its foreign assets, with deals requiring OFAC approval.
Why it matters
The extension preserves Lukoil's international retail footprint for another six months, blunting the immediate impact of US sanctions designed to cut revenues financing Russia's war against Ukraine. By linking the exemption to a Russian diesel deal criticized across the US political spectrum and by EU foreign ministers, the move sharpens questions about US enforcement of energy sanctions at a moment when European allies want to maintain pressure on Moscow.
What happened
On Thursday, the US Department of the Treasury extended the validity of permits covering operations involving Lukoil's foreign gas stations and several Bulgarian subsidiaries — Lukoil Neftohim Burgas, Lukoil Bulgaria, Lukoil Aviation Bulgaria and Lukoil Bulgaria Bunker — until April 24, 2027. The previous permit had been set to expire later this month. The Office of Foreign Assets Control (OFAC) published information about the extension, which keeps the existing ban on transferring funds to persons or accounts in Russia. The decision came one week after President Donald Trump announced on social media that Moscow would supply 300,000 tons of diesel fuel to US and global markets, with 500,000 tons to follow in November and one million tons at a later date. US lawmakers from both parties criticized the diesel arrangement as conflicting with a 2022 ban on Russian energy imports and with sanctions Trump signed in September. EU foreign ministers said the deal undermined transatlantic unity while Russia intensified attacks on Ukraine. The Treasury had already extended the exemption once, in April 2026, and issued a temporary license after Trump's announcement to facilitate the diesel supplies.
How Ukrainian sources describe it
Ukrainian media frame the extension as continued sanctions relief for a major Russian oil company and situate it alongside the controversial Russian diesel deal announced by Trump. They highlight bipartisan criticism in Washington and EU foreign ministers' objections that the deal undermines transatlantic unity while Russia intensifies its attacks on Ukraine.
Background
The US and Israel began strikes on Iran at the end of February, prompting sharp rises in energy prices. Tehran's blockade of the Strait of Hormuz, one of the world's key oil transit routes, drove prices higher still, against the backdrop of an ongoing eighth month of war in the Middle East. The US imposed sanctions on Lukoil and Rosneft in October 2025 to limit Russian oil revenues financing the war against Ukraine; in April 2026, the Trump administration first extended the exemption allowing Lukoil's foreign gas stations to operate. After sanctions took effect, Lukoil announced it would seek buyers for its international assets, subject to OFAC approval.