Great Britain has extended until October 29th the term of the general license, which allows transactions with the Bulgarian companies of the Russian oil concern “Lukoil“ (Lukoil), after the previous permit was due to expire tomorrow, August 13.
The decision allows the companies to continue their operations despite the sanctions imposed by London on the Russian company in October last year for its support for Russia's war against Ukraine.
The license of the Office for Financial Sanctions Enforcement (OFSI) at the British Treasury covers “Lukoil Bulgaria“, “Lukoil Neftokhim Burgas“, “Lukoil Aviation Bulgaria“ and “Lukoil - Bulgaria bunker“.
The authorization is necessary to enable the companies to carry out payments and other transactions related to their normal business activities, without the counterparties and financial institutions that serve them violating the British sanctions regime.
The first British general license for the Bulgarian assets of “Lukoil“ entered into force on 14 November 2025 and was initially to be valid until 14 February 2026. It allowed payments to and from the affected companies under existing and new contracts, as well as the processing of these payments by banks and other financial institutions.
In February, the UK extended its validity until 13 August. At the time, the Ministry of Energy indicated that the decision was the result of the Bulgarian government's actions to ensure the continuous operation of the companies and the security of supplies.
In parallel with the UK sanctions, “Lukoil“ is also subject to US restrictions. The US included “Lukoil“ and “Rosneft“ (Rosneft), as well as dozens of their subsidiaries, in a sanctions package in October 2025.
The US Office of Foreign Assets Control (OFAC) also issued a separate license for “Lukoil“'s Bulgarian companies. In April, its term was extended until October 29, 2026, allowing for transactions necessary for their activities. Thus, the terms of the British and US permits now coincide.
After the imposition of sanctions, “Lukoil“ announced its intention to sell its international assets and began considering offers from potential buyers. At the end of January, the company announced that it had reached an agreement with the American investment company “Carlyle“ for the sale of “Lukoil International“ (Lukoil International GmbH), through which the group's international assets are held. The deal is subject to regulatory approvals, including from OFAC.
The Bulgarian assets are among the significant international assets of the Russian group and include the “Lukoil Neftochim Burgas“ refinery, as well as activities in the trade and distribution of fuels. The Burgas refinery is the largest in the Balkans, BTA indicates.
The American authorities have also repeatedly extended a separate license that allows negotiations and certain transactions on the sale of “Lukoil“s international assets. On July 24, the US Treasury Department extended this deadline by another month, until August 22.