Washington: The US Treasury Department announced on Thursday that it has extended the deadline for the Russian energy company Lukoil to sell its foreign assets until April 1. This decision comes with the issuance of a new general license, replacing a prior extension that was set to expire at the end of February.

According to Anadolu Agency, the Treasury's Office of Foreign Assets Control has issued a license authorizing transactions that are "ordinarily incident and necessary to the negotiation of and entry into contracts for the sale, disposition, or transfer of Lukoil International GmbH" and related entities through early April. The license also permits transactions related to the maintenance and wind-down of Lukoil's international operations up until the same date. However, it explicitly prohibits "the transfer of funds to any person or account located in the Russian Federation."

The execution of any contracts made under this license will still require separate authorization from the Treasury Department, as stated by the agency.

Lukoil was sanctioned by Washington in October under the direction of US President Donald Trump, as a component of broader strategies to restrict Russia's energy revenues. Lukoil, being Russia's second-largest oil producer, is a significant target in Western strategies to limit financial resources available for Moscow's military activities. The US frequently updates its sanctions licenses to balance the economic impact on global markets while continuing to apply pressure on the Kremlin.