US extends sanctions waiver for Russian oil giant Lukoil until 2027
The US Treasury Department has extended a licence allowing Lukoil-branded service stations outside Russia to operate until 24 April 2027. The move comes a week after President Donald Trump announced a diesel supply deal with Russia.
The US Treasury Department on Thursday extended a sanctions waiver for Russian oil company Lukoil. The licence lets Lukoil-branded petrol stations outside Russia, including in the United States, keep serving customers until 24 April 2027. It replaces an earlier licence that was due to expire later this month.
The new licence keeps a restriction in place: the transfer of funds to any person or account located in the Russian Federation remains prohibited.
Link to the diesel deal
The decision follows by a week the announcement by US President Donald Trump of an agreement with Russia to supply diesel to the US and global markets. After that announcement, the Treasury issued a temporary licence to facilitate deliveries.
According to Trump's social media post, Moscow would release 300,000 tonnes of diesel to the US and global markets immediately, followed by 500,000 tonnes in November and one million tonnes after that.
EU foreign ministers have reacted badly to the deal. They argue it undermines transatlantic unity at a time when Russia is stepping up its attacks on Ukraine.
Oil price backdrop
Oil prices remain high as the war in the Middle East enters its eighth month. Energy costs rose sharply after the US and Israel launched attacks on Iran in late February. Tehran's response included blockading the Strait of Hormuz, a key route for global oil transit, which pushed costs up further.
