Maxim Shevyrenkov, Head of the Commodity Market Analysis Center at the Institute for Energy and Finance, commented to Forbes on the prospects for the LUKOIL's foreign assets sale.
The freezing of funds from the sale is an expected scenario, but there is a reservation in the explanation that OFAC may approve the withdrawal of funds from the blocked account by a separate decision, Maxim Shevyrenkov recalls.
But since Lukoil's room for maneuver in negotiations with OFAC is limited, the Russian company may not rush to sell in order to receive further delays until a buyer is found that suits both the company and the US Treasury, the expert argues."Thus, Lukoil can receive some proceeds if it finds a buyer approved by OFAC," he believes.
The deadline for the sale of assets before December 13 is no more realistic than the original deadline of November 21, Shevyrenkov believes. According to him, it is hardly possible to sell an oil refinery or a field with a production sharing agreement within these terms. The legal registration of such transactions will take a long time, during which OFAC is likely to extend the deferrals of sanctions, he predicts.
"So there is a high probability that the sale process will take months," Shevyrenkov sums up.