Lukoil wants to return to the American market. Are we preparing for the post-war period?

Litasco, the international oil trading and shipping company owned by Russian oil company Lukoil, is trying to rebuild its business in the Americas by arranging credit lines and distancing itself from Russian oil trading and its parent company, they told Reuters sources close to Litasco.

Litasco and Lukoil were not sanctioned by the United States as part of its wide-ranging sanctions against Russian energy companies. The United States and its Western allies are trying to stifle Vladimir Putin's revenue from energy exports, the most important source of income for Moscow's budget.

Although neither Switzerland-based Litasco nor Lukoil are on the sanctions list, international credit lines to the trading company have dried up to almost nothing, according to Reuters' sources. Banks, insurance companies and other operators in the oil sector have however avoided doing business with Litasco, for fear of future sanctions against the company or Lukoil, and for image fears, given that many operators have tried to distance themselves from oil trading and Russian petroleum products.

A source told Reuters that Litasco was trying to distance itself from Russian parent company Lukoil, Russia's second-largest oil producer after state-controlled Rosneft. Others added that Litasco operates independently from its parent company.

Russian oil tanker

Litasco is now trying to rebuild its oil and fuel trading business in the North, Central, South Americas and the Caribbean, one of the sources said.

All three sources told Reuters that Litasco's U.S.-based unit, Lukoil Pan Americas, does not trade in Russian-origin oil cargoes.

In addition to distancing itself from Russian oil trading, Litasco has already secured more than $2 billion in open credit lines that will support its trades, according to the sources.

These credit lines put “the company in a solid financial position to reactivate the business which has been virtually dormant for the past two years,” a source told Reuters.

However, this could also be the sign of a possible détente which, after the elections in the USA, could lead to ceasefire talks and, therefore, to a return to commercial normality, or almost. It could be a high sign of a situation that could slowly improve Litasco

The article Lukoil wants to return to the American market. Are we preparing for the post-war period? comes from Economic Scenarios .

This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/lukoil-vuole-tornare-sul-mercato-americano-ci-si-prepara-al-dopoguerra/ on Wed, 30 Oct 2024 17:00:48 +0000.