US President Donald Trump’s Treasury again extended a license allowing continued business with Lukoil-branded gas stations outside Russia on Thursday, despite US sanctions against Russia’s second-largest oil producer.
The US imposed sweeping sanctions against Lukoil and Rosneft in late October. Days later, the Russian gas giant announced plans to sell its international assets due to “restrictive measures against the Company and its subsidiaries by some states.”
As per Reuters, transactions have been authorized for about 2,000 stations throughout Europe, Central Asia, the Middle East, and the Americas until the end of April next year.
The waiver allowing the transactions was issued by Trump’s administration in mid November, alongside a number of other exemptions. A Western diplomat told Kyiv Post at the time that these may raise concerns that the US sanctions were “more bark than bite.”
On the other hand, the exemptions may help avoid major disruptions to Europe and the Americas, where Lukoil operates infrastructure.
For example, Lukoil owns Bulgaria’s only oil refinery. After the sanctions were announced, Bulgaria temporarily restricted petroleum exports, including to other EU states – in order to protect “the country’s energy security and the stability of the domestic fuel market,” parliamentarians said.
After the US gave Lukoil a one-month deadline to sell its Bulgarian assets (later extended until April 29), Sofia passed another law – this time bringing the refinery under state control and appointing a government official to oversee the refinery’s operations.
As per The Moscow Times, Lukoil responded by asking the Bulgarian government not to interfere.
“The Company reserves the right to seek judicial remedies to protect its rights and legitimate interests in the event of their violation,” the statement reads.
Also on Thursday, Russian President Vladimir Putin challenged the legitimacy of US sanctions on Russian oil during a visit to India.
“The United States itself still buys nuclear fuel from us for its own nuclear power plants. That is also fuel. If the US has the right to buy our fuel, why shouldn’t India have the same privilege?” Putin said, as per Reuters.