OFAC Sets Conditions for Sale of Lukoil’s Foreign Assets

Proceeds from the sale of assets will be placed into frozen accounts that may only be released once sanctions against Lukoil are lifted, Orda.kz reports.

The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) clarified the conditions under which negotiations for the sale of Lukoil’s foreign assets are allowed.

Any transaction involving Lukoil’s assets outside Russia will require separate approval.

To support such divestments and further cut off funding to Russia, OFAC issued GL 131, which authorizes negotiations and entry into contingent contracts with Lukoil for the sale of Lukoil International GmbH (LIG) or any of LIG's majority-owned subsidiaries. Authorized activities include negotiations on terms for definitive agreements and financial, legal, or operational due diligence, including engagement of outside counsel or advisors. GL 131 expires on December 13, 2025,  the statement said.

OFAC will evaluate potential deals based on whether they fully sever ties with Lukoil, whether proceeds will remain frozen, and whether the company could gain any unintended benefits.

Any funds received by Lukoil or its subsidiaries will be placed into frozen accounts unless OFAC grants an exemption. The U.S. also reserves the right to revoke the license at any time if it concludes that Lukoil is negotiating in bad faith.

Earlier, it was reported that with support from the Trump administration, the United States hopes to “transfer” Lukoil’s foreign assets to American companies. ExxonMobil is considering acquiring additional stakes in Kazakhstan’s Karachaganak and Tengiz projects, where it already holds shares.

Carlyle Group is also interested, and Chevron is exploring the possibility of buying a 13.5% stake in Karachaganak and a 5% stake in Tengiz. All of these companies are prepared to move forward if OFAC approves.

Lukoil’s earlier attempt to sell its foreign assets to the trader Gunvor had already fallen through after the U.S. Treasury accused the company of ties to the Kremlin, blocking the deal.

Regarding Kazakhstan, KazMunayGas stated that it is not discussing any stake purchases.

Original Author: Ruslan Loginov