Lukoil, the major Russian energy company sanctioned by the U.S. last week (see 2510220050), has accepted an offer for its international business, Lukoil International GmbH, to be bought by Gunvor Group, a multinational energy commodities trading company, Lukoil announced Oct. 30. It said the agreement depends on Gunvor obtaining "permission" from the Office of Foreign Assets Control, "as well as any other applicable licenses, permits and other authorizations in other applicable jurisdictions."
The Office of Foreign Assets Control issued a new general license this week that authorizes certain transactions involving the German subsidiaries of major Russian energy company Rosneft, which OFAC sanctioned earlier this month (see 2510220050). General License 129, issued Oct. 29, authorizes certain transactions with Rosneft Deutschland GmbH and RN Refining & Marketing GmbH, along with their majority-owned entities, through 12:01 a.m. ET April 29. OFAC also updated one FAQ about its restrictions on petroleum services involving Russia.
The U.S. and Japan this week agreed to improve “technology protection” measures and enforcement coordination as part of a new Technology Prosperity Deal. Japan also agreed to pursue new sanctions against the Russian shadow fleet, strengthen foreign investment reviews and commit to work with the U.S. to strengthen critical minerals supply chains.
China's Ministry of Commerce this week urged the U.K. to reverse its recent sanctions against Chinese companies for supplying electronic parts to Russia's defense sector (see 2510160021), saying it "firmly opposes" the restrictions.
Four Senate Democrats criticized the Trump administration Oct. 23 for ignoring their earlier call to sanction Chinese individuals and entities that buy liquefied natural gas from the U.S.-sanctioned Arctic LNG 2 project in Russia.
Beijing objected to the EU’s new Russia-related sanctions package, approved this week, saying it “strongly deplores and firmly rejects the EU’s repeated illicit unilateral sanctions against Chinese companies over Russia-related issues.” A Chinese Foreign Affairs Ministry spokesperson said the country “lodged protests with the EU side.”
Senate Foreign Relations Committee ranking member Jeanne Shaheen, D-N.H., urged the Trump administration late Oct. 22 to increase sanctions on the “shadow fleet” of tankers Russia uses to get around the international price cap on its oil.
EU member states this week signed off on a new package of Russia-related sanctions that will ban imports of Russian liquefied natural gas, designate more shadow fleet vessels, target more Russian and foreign banks, introduce new export controls and more. The package, proposed in September (see 2509190029) and approved this week, came just after the U.S. sanctioned major Russian energy companies Rosneft, Lukoil and their subsidiaries because Russia hasn't agreed to a peace deal to end its war in Ukraine (see 2510220050).
The U.S. should follow up its new Russia energy sanctions against Rosneft and Lukoil with more designations in the coming weeks, said John Herbst, senior director of the Atlantic Council’s Eurasia Center, in a commentary published by the Atlantic Council. To push for an end to the Russia-Ukraine war, Trump should “prepare for a monthslong ratcheting up of pressure on Moscow,” Herbst said. “At the moment, all [Russian President Vladimir] Putin sees for sure is another round of sanctions. It must not be the last round.”
The Senate Foreign Relations Committee approved several bills by voice vote Oct. 22 that could lead to additional sanctions on China and Russia.