US permits negotiations over Lukoil’s foreign assets to take place until January 17, 2019.

The United States extended Wednesday a deadline for negotiations to buy the global assets of Russian Oil?company Lukoil. It was originally set at?January 17th. Lukoil's assets were put up for sale soon after President Donald Trump imposed sanctions against the two largest Russian energy companies on October 22, as part of a campaign to pressure Moscow regarding its war in Ukraine. The assets of the company, which include oil fields, refineries and a retail gas station network, are valued at $22 billion. A wide range of companies, including U.S. Private Equity firm Carlyle Group and U.S. Oil Major Chevron, have shown interest.

The extension of the?license general issued by the U.S. Treasury allows interested parties also to enter contingent contracts for sale of assets and winding down of related work. Xtellus Partners has proposed that the proceeds of the sale of Lukoil’s foreign assets are used to reimburse American investors who have lost money because the war in Ukraine caused their Lukoil holdings to be frozen. This was reported previously, citing sources.

Before the start of World War II, Western investors owned over a quarter (25%) of Lukoil.

The U.S. Treasury Department?has not yet commented on the proposal.

Lukoil's overseas operations have been disrupted by the U.S. sanctions, from Iraq to Finland. Sources said that the company asked for a delay in negotiations to give it more time to negotiate deals. (Reporting from Timothy Gardner in Washington, Costas Pitas and Matthew Lewis in Los Angeles. Editing by Doina chiacu and Nick Zieminski)

(source: Reuters)