Lukoil Pressed to Sell International Assets as U.S. Monitors MOL Bid

Lukoil North America, the U.S. subsidiary of sanctioned Russian oil giant Lukoil PJSC, is now turning to two small New Jersey banks—OceanFirst Bank NA and Parke Bancorp—to manage its financial operations after losing key banking partners according to Bloomberg. The company had previously relied on BCB Bancorp Inc and Citibank NA, but both severed ties due to U.S. sanctions imposed on Lukoil's parent company as reported. With electronic transactions disrupted, many of Lukoil's nearly 200 U.S. gas stations are now receiving revenue via checks, complicating its financial flows.

The shift comes as the U.S. government continues to tighten its grip on Russia's economic lifelines, with sanctions targeting key energy producers like Lukoil. The company now needs a financial intermediary to facilitate payments both to and from its franchisees according to Bloomberg. OceanFirst Bank is currently in discussions with the Office of Foreign Assets Control (OFAC) to restore electronic payment capabilities, a crucial step for Lukoil's operations to remain viable as reported.

The U.S. Treasury has temporarily authorized routine transactions for Lukoil's U.S. operations until April 29, but large banks have been reluctant to engage due to fears of regulatory scrutiny according to Bloomberg. Treasury Secretary Scott Bessent recently praised Banco Santander for cutting ties with Gunvor Group, a trading house with Russian connections, highlighting Washington's pressure on global institutions to distance themselves from sanctioned entities according to Bloomberg.

A Tenuous Waiver for Lukoil's Global Stations

In a move that aims to prevent economic shocks in regions reliant on Lukoil's operations, the U.S. government has extended a sanctions waiver for the company's non-Russian gas stations through April 29, 2026 according to Bloomberg. The waiver allows continued business with about 2,000 stations in Europe, Central Asia, the Middle East, and the Americas, despite the broader sanctions regime according to Kyiv Post. The extension reflects the administration's attempt to balance sanctions enforcement with economic stability, particularly in Europe, where Lukoil has a significant presence according to Reuters.

The decision comes amid growing concerns that abrupt cutoffs could lead to fuel shortages, price spikes, and operational disruptions. In countries like Bulgaria, where Lukoil owns the only oil refinery, the stakes are particularly high according to Kyiv Post. The company has already faced attempts by some governments, including Bulgaria's, to take control of its assets, underscoring the political and economic tensions surrounding its international holdings according to Kyiv Post.

MOL's Lukoil Interest and U.S.-Hungary Dynamics

Hungary's MOL has emerged as a potential buyer for Lukoil's international assets, according to Reuters. The Hungarian oil company is reportedly interested in acquiring Lukoil's refineries and fuel stations in Europe, as well as its stakes in oil fields in Kazakhstan and Azerbaijan according to Reuters. MOL's pursuit is notable given its close relationship with Hungary's Prime Minister Viktor Orban, who has long maintained ties with Russian energy interests according to Reuters.

The U.S. government appears to be monitoring the situation closely, with Orban having discussed MOL's plans during a recent meeting with President Donald Trump. That discussion reportedly led to a one-year waiver allowing Hungary to continue using Russian energy despite sanctions according to Reuters. The move highlights the complex diplomatic balancing act Trump's administration faces, as it seeks to both pressure Moscow and accommodate key allies like Hungary.

The Path Forward for Lukoil's International Exit

Lukoil is under pressure to complete the sale of its international assets by December 13, with several major oil companies and investors already engaged in talks according to Reuters. Exxon Mobil and Chevron are among the contenders, along with Middle Eastern investors. The U.S. has already rejected Gunvor Group as a buyer, citing concerns over the company's Russian ties according to Reuters.

The sale of Lukoil's assets represents a high-stakes process, not just for the company but for the global energy landscape. The outcome could reshape markets in Europe and beyond, particularly if MOL or another European player acquires key assets. Investors and policymakers will be closely watching the final terms and timing of the sale, which will have significant implications for energy security and regional economies.