U.S. authorities have extended a deadline allowing Russia’s sanctioned oil company Lukoil to negotiate the sale of most of its international assets, a move that could reshape energy markets across Eastern Europe, the Middle East and parts of Africa.
The U.S. Treasury has given Lukoil until Feb. 28 to strike deals for assets estimated to be worth about $22 billion. Any sale would still require separate U.S. approvals because of sanctions imposed after Russia’s invasion of Ukraine.
The portfolio includes oil fields, refineries and hundreds of fuel stations outside Russia, drawing interest from a wide range of global energy firms and private equity groups. Potential buyers include Carlyle Group, a consortium involving Chevron and Quantum Capital Group, Abu Dhabi-based International Holding Company, Exxon Mobil, Hungary’s MOL and Saudi Arabia’s Midad Energy.
U.S. officials have already blocked two bidders — Gunvor and U.S.-based Xtellus Partners — underscoring the geopolitical sensitivities surrounding any transaction involving Russian energy assets.
Lukoil’s most valuable overseas holding is a 75% stake in Iraq’s West Qurna 2 oil field, one of the world’s largest. Production has remained stable at roughly 465,000 to 480,000 barrels per day, but Iraq has approved a plan for state-run Basra Oil Company to temporarily take over operations amid payment disputes and sanctions-related uncertainty.
The company also holds significant upstream assets across Egypt, the United Arab Emirates, Kazakhstan, Azerbaijan, Uzbekistan and several African and Latin American countries, including offshore projects in Ghana, Congo, Nigeria and Mexico.
In the Balkans, Lukoil owns the Neftohim Burgas refinery in Bulgaria — the region’s largest — processing about 190,000 barrels per day. Bulgaria has amended its laws to allow the state to seize and sell the asset, while the U.S. Treasury has permitted transactions involving the refinery until April 29, 2026.
In neighboring Romania, Lukoil operates the Petrotel refinery and more than 300 fuel stations. Romanian authorities approved legal changes late last year enabling the state to take control of the company’s local assets if necessary. Officials said multiple firms have expressed interest in a potential purchase.
Lukoil also has refining and retail interests in the Netherlands, Finland, Moldova and the United States, where about 200 gas stations still operate under the Lukoil brand.
Sanctions are also dismantling the company’s Swiss-based trading arm, Litasco, which once handled roughly 4% of global oil trading. The firm has sharply reduced staff in Geneva, Houston and Dubai as it winds down operations.
The future of Lukoil’s international empire remains uncertain, with Western governments weighing energy security concerns against the risk of market disruption as sanctions continue to reshape global oil flows.