US Delays Russian Oil Asset Sale Deadline as Ukraine Peace Talks Continue

The Biden administration has pushed back the deadline for selling Russian oil company Lukoil's international assets from February 28 to April 1. Sources say the US is using the $22 billion asset portfolio as leverage in ongoing Ukraine peace negotiations.

The Biden administration has given potential buyers of Russian oil giant Lukoil’s worldwide holdings an additional month to complete their purchases, moving the deadline from February 28 to April 1, according to government documents obtained by Reuters.

Four sources with knowledge of the situation say Washington is deliberately slowing down the sale process to leverage these valuable assets during ongoing Ukraine peace negotiations.

The US Treasury’s Office of Foreign Assets Control will announce the extension on Thursday, marking the fourth time officials have pushed back the original deadline since sanctions were imposed on Russia’s two largest oil companies last October.

Recent diplomatic meetings in Geneva, Abu Dhabi, and Miami between American, Russian, and Ukrainian representatives have failed to produce any major agreements on ending the conflict in Ukraine. Three sources briefed on these discussions revealed that sanctions against state-owned Rosneft and Lukoil were part of the negotiation topics.

Another round of trilateral talks is scheduled for March.

The sanctions mandate forced Lukoil to sell its international business empire, worth approximately $22 billion and spanning oil fields, refineries, and gas stations across multiple countries from Iraq to Finland. More than a dozen companies have expressed interest in purchasing these assets, including major American oil company ExxonMobil and even the former owner of Pornhub.

While OFAC initially managed the asset sale process, senior officials from the White House, Treasury Department, and State Department have now become directly involved, with Treasury Secretary Scott Bessent taking a more hands-on role, according to three sources.

Government agencies declined to provide comments when asked about connecting the deadline extension to peace negotiations. Lukoil representatives also did not respond to requests for comment.

Ukrainian President Volodymyr Zelenskiy revealed earlier this month that his intelligence agencies informed him of a $12 trillion economic proposal from Russian envoy Kirill Dmitriev to the Trump administration. One source familiar with the matter indicated this deal includes Lukoil assets, potentially creating additional complications for any sale.

Several major firms have already reached preliminary agreements with Lukoil, including American private equity company Carlyle Group, Saudi Arabia’s Midad Energy, and American billionaire Todd Boehly partnering with investment bank Xtellus Partners and UAE-based Alliance Investment Partners.

A joint venture between Chevron and Texas-based Quantum Capital Group remains in active negotiations for the asset portfolio but has not yet reached final terms with Lukoil.