The US on Thursday paused sanctions on Lukoil-branded petrol stations outside Russia, as officials in President Donald Trump's administration were set to continue negotiations with Ukrainian negotiators in Florida.
The Treasury Department first announced the Lukoil sanctions in October as the administration increased its stance against Russia over the war in Ukraine. The sanctions, which were originally due to set in last month, are now suspended until at least April 29.
Among the oilfields in which Lukoil has a significant stake is West Qurna 2 in Iraq, with an estimated 14 billion barrels of recoverable reserves. Iraq's Oil Ministry has said it invited major US companies to bid on the field.
The Russian gas company announced plans to sell its overseas assets after the sanctions were first announced.
Lukoil has about 2,000 petrol stations outside Russia - including across the Middle East, Europe and in the US. The energy company also holds stakes in the UAE, Iraq, Egypt and elsewhere, as well as three refineries in Europe.
The pause comes as a Ukrainian delegation was due to meet US officials who visited Moscow this week. On Tuesday, US special envoy Steve Witkoff and Mr Trump’s son-in-law and adviser Jared Kushner held a five-hour meeting with Russian President Vladimir Putin at the Kremlin.
Russian officials described the meeting as constructive but said more work needs to be done.
However, Mr Putin disagreed with some of the points in the US-backed peace plan in an interview with an Indian media outlet, according to Russia's state-run news agency.
Russia, meanwhile, is making slow but steady progress seizing land in eastern Ukraine.
"Our task now is to obtain complete information about what has been said in Russia and what other reasons Putin has found to prolong the war and to pressure Ukraine, to pressure us, our independence," Ukrainian President Volodymyr Zelenskyy said in Kyiv.
"Ukraine is prepared for any possible developments. Of course, we will work as constructively as possible with all our partners to ensure peace is achieved, and that it is a dignified peace."
