U.S. Eases Restrictions on Lukoil, Allowing Continued Operation of Foreign Gas Stations

On Thursday, the U.S. Treasury Department announced an extension of the authorization for Lukoil-branded gas stations located outside of Russia to continue their operations, temporarily suspending certain sanctions on the Russian energy company.

This decision enables Lukoil-branded stations in places such as the United States to keep catering to customers while ensuring that funds do not flow back to Russia, which has been subjected to extensive sanctions from the U.S. and the EU following its invasion of Ukraine in February 2022.

According to the Treasury, the authorization was extended to «reduce harm to consumers and suppliers aiming to engage in normal transactions» with retail outlets associated with Lukoil.

This action partially alleviates the sanctions imposed by former U.S. President Donald Trump in October.

In an uncommon move to exert pressure on Moscow, Trump imposed sanctions on major Russian oil companies, including Lukoil and Rosneft, which took effect on November 21.

These sanctions — the most significant measures taken by Trump against Russia due to the Ukraine conflict — prompted major purchasers of Russian oil to seek alternative sources.

The announcement of the eased restrictions on Lukoil came during the same week that U.S. negotiators met with Russian President Vladimir Putin in Moscow to discuss a potential U.S. agreement aimed at resolving the conflict.

Last month, the EU’s chief diplomat expressed concerns that Russia might use U.S. proposals for ending the Ukraine war as a strategic delay tactic concerning sanctions.