Carlyle’s $22B Lukoil deal stalls as US approval drags on for nearly 10 months, leaving European refineries idle

A deal that was supposed to untangle one of Russia’s largest oil companies from its international assets has instead become a case study in sanctions-era paralysis. Carlyle Group’s proposed $22 billion acquisition of Lukoil’s overseas operations, announced on January 29, 2026, remains stuck in the US government’s approval pipeline nearly eight months later, with no closing authorization in sight. Meanwhile, European refineries that were supposed to keep running under new ownership sit idle, compounding fuel supply pressures in a market that was already stretched thin. A deal frozen in regulatory amber The transaction covers a sprawling portfolio of international assets: upstream oil fields in Iraq, refineries in Romania and Bulgaria, and retail operations spanning multiple countries. Kazakhstan holdings, including stakes in the Tengiz and Karachaganak fields and the Caspian Pipeline Consortium, were carved out of the deal. The Office of Foreign Assets Control, the US Treasury arm responsible for enforcing sanctions, has issued a series of general licenses allowing negotiations and basic maintenance activities to continue. The latest iteration, GL 131J, extends through October 22, 2...