US extends sanctions waiver for Russian oil giant Lukoil until 2027

On Thursday, the US Treasury Department granted a sanctions waiver extension for Russian oil company Lukoil, permitting its service stations overseas to operate until April 2027. This allows Lukoil-branded petrol stations in nations like the United States to continue serving customers until the 24th of April 2027, replacing a previous license set to expire later that month.

Nevertheless, the new license maintains a restriction on transferring funds to any individual or account situated within the Russian Federation. This decision followed US President Donald Trump's announcement of an agreement with Russia to supply diesel to US and global markets. The Treasury issued a temporary license to facilitate these deliveries, with Trump stating that Moscow would release 300,000 tonnes of diesel to the US and global markets immediately, with additional 500,000 tonnes in November and another million after that.

The Trump-Putin diesel deal has been met with criticism from EU foreign ministers, who argue it weakens transatlantic unity at a time when Russia escalates its assaults on Ukraine. Oil prices remain high due to the ongoing conflict in the Middle East, which has led to a significant surge in energy costs since the US and Israel initiated attacks on Iran in late February, including Tehran's retaliation through the blockade of the Strait of Hormuz, a crucial route for global oil transport, thereby driving prices even higher.