US Treasury grants some sanctions relief to Lukoil Bulgaria

The US Department of Treasury (DoT) has granted some sanctions relief to Russian oil company Lukoil’s Bulgarian subsidiaries, including the bunkering entity.

IMAGE: Lukoil's oil refining units. Getty Images

The US government has allowed companies to do business with Lukoil Bulgaria Bunker, and three more companies until 29 April 2026, the treasury department’s Office of Foreign Assets Control (OFAC) said.

The waiver also applies to any other firm in which Lukoil Bulgaria’s units hold a stake of 50% or more.

The sanctions relief does not extend to other Lukoil subsidiaries that remain under US sanctions, and dealings with those entities are still prohibited unless separately authorised.

Last month, the US announced sanctions a week after the UK said it will step up sanctions on Lukoil and Rosneft and target 44 shadow fleet tankers transporting oil for Russian companies.

In the wake of the sanctions, Lukoil announced that Swiss energy company Gunvor Group is poised to take over its overseas assets. However, some media reports suggest that the deal is not finalised amid US concerns.

Meanwhile, US oil firm Chevron is looking at options to buy global assets of Lukoil, Reuters reported citing five sources familiar with the process.

Chevron is expected to join Carlyle and other companies in the race for the Lukoil portfolio worth about $20 billion, according to the report.

Notably, Lukoil Bulgaria, one of the company’s key subsidiaries, is a bunker fuel supplier in the Black Sea region.

By Aparupa Mazumder

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