US extends deadline for talks on Lukoil assets until May 30

According to a posting on the Treasury Department's website, the U.S. Treasury Department extended by about a month, or a little more than a month, an existing deadline for energy firms to reach agreements to purchase foreign assets from Russia's second largest oil producer Lukoil.

The deadline was pushed back to May 30, from May 1.

As part of its efforts to exert pressure on Russia in the Ukraine peace talks, the Trump Administration slowed down the sale of Lukoil’s international assets, which are valued at approximately $22 billion.

Since imposing sanctions on Lukoil in October, the U.S. have?extended? the deadline about five times. This is because their revenues are a major factor in the support of the four-year-old war in Ukraine.

The sanctions forced the sale of Lukoil’s international portfolio from Iraq to Finland, including oilfields and refineries. More than a dozen bidders have expressed?interest in the process, from ExxonMobil of the United States to Pornhub's former owner.

Deals?must guarantee that Lukoil does not receive any upfront payments, and all proceeds must be placed in a frozen account under U.S. jurisdiction. The Office of Foreign Assets Control of the Treasury Department must also approve any transactions. (Reporting and editing by Michelle Nichols; Caitlin webber)

(source: Reuters)