The Kremlin confirmed Wednesday, Oct. 21, that Russia and the UStates are discussing the future of sanctioned Russian oil giant Lukoil’s overseas assets, valued at approximately $22 billion, as economic negotiations between Moscow and Washington expand alongside efforts to end Russia’s war against Ukraine.
Kremlin foreign policy aide Yuri Ushakov disclosed the talks following Russian President Vladimir Putin’s meeting with US special envoy Steve Witkoff in St. Petersburg, saying the two governments were considering a broad range of economic projects, including the fate of Lukoil’s international holdings.
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The disclosure came as the US Treasury Department extended authorization for negotiations over the sale of Lukoil’s foreign assets until Nov. 21, allowing potential buyers more time to reach agreements that would still require separate US approval.
The developments provide further confirmation that Washington and Moscow are discussing major commercial interests despite American sanctions imposed to restrict Russia’s energy revenues and pressure the Kremlin over its invasion of Ukraine.
Lukoil’s $22 billion foreign assets at center of US-Russia talks
Speaking to Russian state television following Putin’s meeting with Witkoff, Ushakov said Moscow and Washington were reviewing numerous economic proposals, including several major projects.
Among them were discussions concerning US sanctions on Lukoil and the potential sale of its international assets.
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Kremlin spokesman Dmitry Peskov separately confirmed that the US Treasury authorization needed for the sale could be extended if necessary, describing the proposed divestment as a commercial matter.
Lukoil placed its international assets on the market after Washington sanctioned the company in October 2025 over Russia’s war against Ukraine.
US private equity firm Carlyle Group agreed in January 2026 to acquire the assets but subsequently abandoned the deal after it failed to secure regulatory approval. Other prospective buyers have included ExxonMobil.
The portfolio, initially valued at approximately $22 billion, includes oil production interests, refineries and fuel distribution businesses across Europe, the Middle East, Africa and Central Asia.
US Treasury extends negotiations until November
The US Treasury Department’s Office of Foreign Assets Control extended its authorization for negotiations over Lukoil International GmbH and its subsidiaries until Nov. 21, 2026.
The extension allows prospective buyers to conduct due diligence and negotiate conditional purchase agreements. However, it does not authorize the actual transfer of assets or lift sanctions on Lukoil.
Any completed sale requires separate OFAC approval. The Treasury Department has stipulated that the transaction must sever ties with the sanctioned Russian company, prevent it from receiving immediate financial benefits and keep any proceeds owed to Lukoil blocked until sanctions permit their release.
US Treasury oversees Lukoil asset sale as economic talks with Russia expand
The Lukoil negotiations emerged as Witkoff publicly acknowledged that the US Treasury Department was working directly with Putin’s economic envoy Kirill Dmitriev.
During Wednesday’s meeting, Witkoff also discussed future US-Russian economic cooperation, while Putin outlined plans for diesel shipments to the US and offered supplies of Russian fertilizer.
The expanding economic dialogue comes as Russia continues its invasion of Ukraine and Washington seeks to revive trilateral peace negotiations.
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