Russian Lukoil Seeks Sanctions Extension as East Europe Scrambles to Secure Fuel Supplies

Russian energy giant Lukoil is seeking an extension to a critical deadline imposed by the U.S. Treasury Department. According to sources familiar with the matter, the company has filed for a grace period extension beyond the November 21 cut-off, after which U.S. entities will be prohibited from engaging in transactions with the firm. The original deadline was set by the Treasury’s Office of Foreign Assets Control (OFAC) last month as part of renewed sanctions targeting Lukoil and Rosneft, intensifying financial pressure on Moscow amid the conflict in Ukraine.

The looming deadline has triggered a flurry of defensive action in Eastern Europe, particularly in countries heavily reliant on Lukoil’s infrastructure for fuel. Romania and Bulgaria are rushing to protect their respective energy sectors from disruption.

In Romania, where the Petrotel Lukoil refinery supplies a quarter of the nation’s fuel needs, the government plans to take over the facility after attempts to find a private buyer failed. Similarly, Bulgaria—where Lukoil’s massive Burgas refinery is the source of 80% of the nation’s fuel—saw lawmakers quickly pass a bill allowing the government to assume control of the plant. Analysts suggest these aggressive measures could move both countries closer to genuine energy independence in the long term, although short-term market disruptions are still considered a likely risk.