The UK government has quietly loosened financial restrictions on a European subsidiary of Russian oil giant Lukoil. On Friday, Britain's Office of Financial Sanctions Implementation (OFSI) amended an active temporary license, removing a strict rule that required companies to pay the subsidiary into frozen bank accounts.
The change directly impacts Austria-based Lukoil International GmbH and its various subsidiaries, giving British companies more flexibility when doing business with the unit, News.Az reports, citing Reuters.
Under the newly updated terms, UK firms are now permitted to send payments directly to Lukoil International accounts that are not frozen. However, the UK government is keeping a tight leash on where that money can go next:
Allowed: Direct payments into active, unfrozen Lukoil International GmbH accounts.
Blocked: The amendment strictly forbids any of those funds from being funneled back to the ultimate Russian parent company, Lukoil.
The OFSI did not immediately provide a reason for the sudden policy shift.
The temporary license originally went into effect in November 2025 to help businesses navigate the fallout of sweeping geopolitical trade restrictions. Having already received a prior extension, the license is currently scheduled to expire on August 25, 2026, and remains subject to the UK's broader, ongoing Russian sanctions framework.
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