US extends sanctions waiver for Russian oil giant Lukoil until 2027

The US Treasury Department on Thursday extended a sanctions waiver for Russian oil giant Lukoil, allowing its service stations outside Russia to continue operating until April 2027.

The extension allows Lukoil-branded petrol stations in countries including the United States to continue serving customers until 24 April 2027, replacing an earlier licence due to expire later this month.

However, the latest licence maintains restrictions on the "transfer of funds to any person or account located in the Russian Federation".

The decision comes a week after US President Donald Trump announced an agreement with Russia to supply diesel to US and global markets, prompting the Treasury to issue a temporary licence to facilitate deliveries.

The deal, as announced by Trump on social media, envisages that Moscow will release 300,000 tonnes of diesel to the US and global markets immediately, with an additional 500,000 tonnes in November and one million more after that.

The Trump-Putin diesel deal has been badly received by EU foreign ministers, who say it undermines transatlantic unity at a time when Russia intensifies its attacks on Ukraine.

Oil prices remain elevated as the war in the Middle East enters its eighth month, following a sharp rise in energy costs since the US and Israel launched attacks on Iran in late February.

Tehran's retaliation included the blockade of the Strait of Hormuz, a key passage for global oil transit, sending costs up.