The European Commission is analyzing ways to obtain temporary licenses or implement mechanisms to mitigate US sanctions on certain assets of the Russian oil company Lukoil within the European Union.
This is reported by Kyiv24
Lukoil Assets in EU Countries and Sanction Specifics
In Romania and Bulgaria, large oil refineries owned by Lukoil are operational, while in the Netherlands, the company holds 45% of the shares in the local fuel processing complex. Additionally, hundreds of Lukoil gas stations operate in EU countries, with around 200 located in Belgium. At the beginning of Russia’s large-scale invasion of Ukraine, these facilities were repeatedly targeted by protests from Ukrainian activists demanding sanctions against the company.
Although sanctions against Lukoil have not been imposed in the EU, this is attributed to its status as a private company—unlike state-owned entities such as Rosneft and Gazprom Neft. The state share in Lukoil is minimal, and private investors dominate the shareholder structure. As a result, the European Union cannot apply the same legal mechanisms used for sanctions against Russian state-owned enterprises.
“We plan to discuss with our American partners the possibility of obtaining certain relaxations or temporary licenses for specific activities—at least for a certain period, to be able to gradually wind them down,” said an EU official who is not authorized to provide official comments to the media.
Impact of American Sanctions and Market Reaction
On October 22, the US imposed sanctions against Rosneft, Lukoil, and over thirty of their subsidiaries. These restrictions automatically apply to enterprises in which Rosneft and Lukoil hold more than 50% ownership. Discussions have already begun in Georgia regarding whether Lukoil Georgia falls under American sanctions.
The US Department of the Treasury warned financial institutions worldwide that cooperation with companies under sanctions could result in secondary sanctions—freezing correspondent accounts and restricting access to the US financial system.
Politico notes that the scale of American sanctions may force Russian companies to sell their assets in Europe and halt oil supplies through remaining pipelines. In turn, Bloomberg emphasizes that Indian refineries have already announced an almost complete cessation of purchases of Russian oil due to the new restrictions.
The Russian Federation has one month to prepare for the full implementation of these sanctions.