The United States has extended by one month, to June 27, a licence allowing companies to continue discussions with Russia’s second-largest oil producer Lukoil (LKOH.MM) over the potential purchase of its overseas assets, according to the US Treasury Department, Reuters reported on May 28.

The extension marks the sixth time Washington has prolonged the authorisation since imposing harsh oil sanctions last October on Russia’s two biggest oil producers, Lukoil and Rosneft (ROSN.MM).

US authorities have linked the measures to the role that revenues from Russia’s oil industry play in supporting Moscow’s war in Ukraine, which has continued for more than four years. Lukoil announced it would divest itself of all its international holdings, but has struggled to find buyers since. The US Treasury Department has extended the waiver on negotiating with a sanctioned entity several times to facilitate the sale.

The licence allows prospective buyers and advisers to maintain negotiations related to a disposal of Lukoil’s international portfolio while complying with US sanctions rules. Any eventual transaction would still require approval from the Treasury Department’s Office of Foreign Assets Control (OFAC), which administers and enforces US sanctions programmes.

The sanctions effectively forced the sale of Lukoil’s portfolio of overseas assets worth $22bn. The assets span multiple jurisdictions and include oilfields, refineries and fuel retail networks stretching from Iraq to Finland.

Interest in the assets has been broad. Reuters reported on May 28 that more than a dozen potential bidders have explored opportunities connected to the portfolio. Parties linked to the process have ranged from major energy groups, including Exxon Mobil (XOM.N), to a variety of financial and private investors.

Under the conditions set by Washington, any agreement must be structured so that Lukoil does not receive an upfront payment. Instead, proceeds would be placed in a frozen account under US jurisdiction. The arrangement is intended to prevent sanctioned entities from gaining immediate access to funds while preserving a mechanism for transactions that receive regulatory clearance.

Lukoil is Russia’s largest privately owned energy company and has maintained operations across Europe, the Middle East and other international markets for decades. The latest extension provides additional time for negotiations over a complex portfolio whose sale remains subject to US sanctions requirements and final OFAC approval.