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The United States has postponed certain sanctions on Lukoil’s foreign fuel operations by expanding exemptions for the company’s Bulgarian subsidiaries and ongoing asset-sale processes, according to new guidance from the U.S. Treasury’s Office of Foreign Assets Control (OFAC).
On 14 November 2025, the Treasury issued General License No. 130, extending authorization for transactions involving four Bulgarian Lukoil entities until 29 April 2026. The license covers Lukoil Neftohim Burgas JSC, Lukoil Bulgaria EOOD, Lukoil Aviation Bulgaria EOOD and Lukoil Bulgaria Bunker EOOD, as well as any companies in which they hold more than a 50% stake.
These entities operate the Burgas refinery — a critical fuel hub for the region — and the exemption is intended to preserve energy security for U.S. allies without providing financial benefit to the Russian government. The U.K. has taken a similar approach: London’s OFSI has prolonged its own exemptions until 14 February 2026.
OFAC also updated General License No. 128A, which authorizes the procurement, servicing, and wind-down of Lukoil-branded retail gas stations outside Russia until 13 December 2025. A new General License No. 131 permits negotiations and conditional contracts for the sale of Lukoil International GmbH — the umbrella company for Lukoil’s foreign assets — with the requirement that all payments remain in escrow until U.S. sanctions on Russia are lifted.
The U.S. imposed sanctions on Lukoil on 22 October 2025 as part of a broader package targeting Russian oil majors. The company, which accounts for roughly 0.5% of global crude output, has already faced setbacks: Switzerland’s Gunvor walked away from a €14 billion deal to acquire Lukoil assets after OFAC declined to grant a license. The firm is now seeking other buyers, though any sale will require Washington’s approval.
Analysts describe the new exemptions as a form of “temporary relief” meant to stabilize Europe’s fuel market — particularly in Bulgaria, where the Burgas refinery produces up to 200,000 tonnes of petroleum products each month. “This is not a sanctions rollback; it’s a mechanism to maintain pressure on asset divestment without undermining the energy security of U.S. partners,” a Baker McKenzie analyst noted.
