Kremlin confirms Lukoil asset talks with Washington as Treasury extends deadline

Kremlin foreign policy aide Yuri Ushakov confirmed Wednesday that Russia and the United States are in talks over the international assets of sanctioned Russian oil company Lukoil, valued at approximately $22 billion, following a meeting between President Vladimir Putin and US special envoy Steve Witkoff in St. Petersburg.

Ushakov said the two governments were considering a broad range of economic projects, including the fate of Lukoil's international holdings. Kremlin spokesman Dmitry Peskov separately described the proposed divestment as a commercial matter and confirmed that US Treasury authorisation for the sale could be extended if necessary.

The US Treasury Department's Office of Foreign Assets Control extended its authorisation for negotiations over Lukoil International GmbH and its subsidiaries until 21 November 2026. The extension allows prospective buyers to conduct due diligence and negotiate conditional purchase agreements but does not authorise the actual transfer of assets or lift sanctions on Lukoil. Any completed sale requires separate OFAC approval, and Treasury has stipulated that the transaction must sever ties with the sanctioned company.

Lukoil placed its international assets on the market after Washington sanctioned the company in October 2025. US private equity firm Carlyle Group agreed in January 2026 to acquire the assets but subsequently abandoned the deal after failing to secure regulatory approval. ExxonMobil has been named among other prospective buyers.

The portfolio includes oil production interests, refineries and fuel distribution businesses across Europe, the Middle East, Africa and Central Asia.