In our previous post we considered the clarifications issued by OFAC in connection with the proposed sale by Lukoil of its foreign assets following Lukoil’s designation as SDN (see our post on this designation). The clarifications were important, because for the first time OFAC publicly disclosed its policy towards granting individual licenses for the disposal of blocked assets. This is of relevance for the Lukoil’s specific case, but also for other similar situations.
On 18 December 2025, OFAC issued an up-date to its earlier guidance.
This up-date is also noteworthy, because OFAC further tightened up what already appeared to be very stringent conditions for authorising disposals of blocked assets. More specifically OFAC clarified that its earlier set of conditions for authorising such disposals (see our earlier post) is a minimum set of conditions and, accordingly, their satisfaction is a must have requirement for a successful application.
OFAC added another condition for granting a license for the disposal of Lukoil’s assets, namely that:
“OFAC expects that it will require persons purchasing [Lukoil’s foreign] assets to seek OFAC review before further divestment of material [Lukoil foreign] assets.”
This additional condition is likely to be driven by OFAC’s willingness to prevent any transaction where the original purchaser (which obtains a license from OFAC) will act as a front person for another person (which, for example, considers that it has little chances to obtain an OFAC license, because it may be an undesirable purchaser from the OFAC’s perspective).