Carlyle Group's approximate $22 billion agreement to purchase Lukoil International GmbH's remaining European refineries has been stalled by the US Treasury Department’s Office of Foreign Assets Control (OFAC). The deal, initially announced on January 29, 2026, involves Lukoil's foreign assets including the Neftohim Burgas refinery in Bulgaria and the Petrotel refinery in Romania. Despite a nonexclusive agreement being in place for months, and an initial proposal for Gunvor to acquire assets failing, the transaction requires regulatory approvals and OFAC clearance, which has not yet been issued.
The delay is partly attributed to a stipulation that any proceeds from the sale would be placed into a blocked account in the US, inaccessible to Lukoil until Russian sanctions are lifted, a condition Lukoil is likely resisting. OFAC's General License 131G, which authorized negotiations only, has seen its expiration date extended multiple times, with the latest extension for negotiations expiring on July 25, 2026. This ongoing uncertainty means that the sale process remains in a holding pattern, despite the transaction's estimated value of $22 billion for Lukoil's international assets, which also include oil fields and filling stations worldwide.
The prolonged stagnation of the deal has had significant repercussions, particularly for Romania's Petrotel refinery. This facility, which accounted for almost 25% of Romania's domestic fuel production with a capacity of 48,000 barrels per day before sanctions, has been inactive for nearly a year after Lukoil was placed under US sanctions in October 2025. Despite a sanctions waiver in April 2026 that allowed for a potential restart, unresolved issues regarding ownership, financing, and operational recovery prevented it from resuming production. The refinery entered insolvency proceedings in late August 2026, highlighting the severe impact of the stalled sale and the broader sanctions on critical energy infrastructure.
The shutdown of Petrotel has intensified Romania's reliance on fuel imports, with the Ministry of Energy reporting a 25% decline in domestic fuel production by February 2026. This situation necessitated increased imports, including a significant rise in deliveries from Saudi Arabia, which supplied 43% of Romania's fuel imports in May 2026, up from 2% in May 2025. The Romanian authorities have implemented various protective measures, including state supervision over Lukoil's assets, fuel export controls, margin caps, and temporary tax relief, to mitigate the impact of the crisis on the national fuel balance and consumers. The continued inactivity underscores the critical need for a credible investor, approved by US regulators, to finalize the acquisition, ensure sanctions compliance, and enable the refinery's return to operation.
