Trump Accused of Weakening Russia Oil Sanctions: “All Bark, No Bite”
The US Treasury Department has opened a pathway for companies to negotiate the purchase of Lukoil’s foreign assets, representing approximately 0.5% of global oil production. This decision, conveyed through updated Russia licenses, allows discussions with the sanctioned Russian oil giant, contingent on severing Lukoil’s control and funneling proceeds into a frozen escrow account. Key licenses include General License 131, which allows asset purchase negotiations, and General License 128A, which allows continued business with Lukoil-branded gas stations outside Russia. This move comes after sanctions were imposed on Russia’s top oil companies and reflects a calibrated approach to isolate Moscow’s oil sector while avoiding disruptions to global energy markets.
John Q. Hosedrinker