Lukoil Seeks Support from Small New Jersey Banks to Maintain Business in the US
The American branch of the Russian oil company Lukoil has begun working with small banks in New Jersey due to US sanctions imposed on its parent company. This decision aims to support the operation of 200 gas stations in the country.
Due to the sanctions imposed by the United States on the Russian company Lukoil on October 22, large American financial institutions refuse to cooperate with its subsidiary Lukoil North America LLC. According to Bloomberg, Lukoil had to turn to OceanFirst Bank NA and Parke Bancorp for managing the financial transactions necessary for its gas station network’s operations. Several franchise owners have already started receiving income via checks due to the complexity of electronic payments.
After Russia’s invasion of Ukraine in 2022, Lukoil North America’s cooperation with Citibank NA ended, and recently other banks, such as BCB Bancorp Inc., joined. Despite the fact that the US Treasury Department temporarily allowed certain transactions to be processed until April 29, major banks prefer to avoid undesired scrutiny from the US government.
The UK, in turn, has also temporarily granted permission for business operations with Lukoil International, insisting on the need to maintain economic contacts despite current sanctions against the main Russian company. This approach demonstrates the challenges international corporations face in light of geopolitical tensions.
| Banks | Activity |
|---|---|
| OceanFirst Bank NA | Negotiating electronic payments |
| Parke Bancorp | Collaborating to process transactions |
| Citibank NA | Cooperation ceased |
| BCB Bancorp Inc. | Cooperation ceased |
