The key facts

  • The US Treasury extended the sanctions exception for Lukoil until April 24, 2027, keeping the ban on fund transfers to Russia.
  • The license was issued a week after Trump announced a deal for Russian diesel supplies: 300,000 tons immediately, 500,000 tons in November, and another 1 million tons later.
  • EU foreign ministers believe the deal undermines transatlantic unity.

License extension

The US Treasury Department has extended the exception from the sanctions regime for the Russian oil giant Lukoil. The new license allows gas stations under this brand outside Russia, including in the United States, to continue serving customers until April 24, 2027. It replaces the previous document, which was set to expire at the end of October. At the same time, the license retains restrictions on 'the transfer of funds to any person or any account located in the Russian Federation.'

Connection to the diesel deal

The decision came a week after US President Donald Trump announced on social media an agreement with Russia to supply diesel fuel to the American and global markets. According to him, Moscow must immediately deliver 300,000 tons of diesel, another 500,000 tons in November, and then an additional one million tons. To carry out these supplies, the US Treasury had earlier issued a temporary authorization.

EU reaction and price context

The Trump-Putin agreement was received extremely negatively by the foreign ministers of EU countries: in their view, it undermines transatlantic unity at a time when Russia is intensifying its attacks on Ukraine. Oil prices remain high: the war in the Middle East has been going on for eight months, and energy prices rose sharply after US and Israeli strikes on Iran at the end of February. In response, Tehran blocked the Strait of Hormuz, a key route for global oil transit, leading to a further rise in prices.