A group of House Republicans is urging the Trump administration to choke off Russia’s profits from one of its largest energy companies as global oil prices spike.
It comes as the U.S. and Israel’s conflict with Iran, one of Russia’s closest allies and another major energy producer, is threatening to spiral the market out of control both overseas and here at home.
Rep. August Pfluger, R-Texas, who chairs the Republican Study Committee, is leading five fellow GOP lawmakers in a letter to Treasury Secretary Scott Bessent regarding Lukoil — which accounts for roughly 2% of the world’s oil output.
Western sanctions have forced Lukoil to announce it would sell certain international assets as countries like the U.S. and U.K. attempt to whittle down Russia’s control over global energy.
‘The U.S. government has a significant role — in fact, a responsibility — in determining the ultimate fate of these oil and gas assets. We encourage you to exercise the utmost caution to ensure we do not inadvertently squander this opportunity and relinquish our leverage to U.S. adversaries,’ the Republicans wrote.
They warned against a situation where ‘transaction loopholes or back-room deals with Lukoil’s senior management’ could allow Lukoil assets to ‘slip back into Russia’s hands as tensions subside or U.S. sanctions are lifted.’
The six Republicans on the letter, all from Texas, are also lobbying the administration to ease a pathway for Lone Star State companies to acquire those assets.
‘President Trump has created a once-in-a-generation opportunity not only to defund Russia’s war machine but also for leading American energy companies — including at least two headquartered in the great State of Texas — to acquire the LIG portfolio, permanently removing globally significant oil and gas assets from Russian control, enhancing energy security, affordability, and reliability, and strengthening President Trump’s America First agenda,’ they argued.
‘[W]e encourage the Department of the Treasury — in concert with the White House and Departments of Energy, State, and War — to scrutinize every detail of the various proposals to ensure that any sale of LIG’s assets ‘completely severs’ ties with the Russian parent company, paving the way for American energy companies to meet this moment with the urgency and precision it so deserves.’
The push comes at a particularly consequential time on the world stage as Iran continues to retaliate against U.S. allies in the Middle East.
Earlier this month, the U.S. and Israel began a joint operation launching strikes against Iran that targeted its military and nuclear assets as well as top leadership ranks.
Russia, which has been wreaking havoc on European energy markets with its invasion of Ukraine since February 2022, has reportedly been aiding Iran against the U.S. operation.
The Washington Post reported that Moscow was providing intelligence to Tehran to help it target U.S. forces in the region. It’s a particularly significant development in the wake of eight U.S. service members’ deaths since the conflict began.
Pfluger cited the conflict in the new letter, but did not mention Russia’s alleged role in aiding Iran.
‘American energy dominance is critical to our national security, and as the events of the last several days in Iran and the broader Middle East region have highlighted, our ability to promote peace through strength is enabled by our role in facilitating the stable and secure supply of energy to world markets,’ the letter said.
‘In this increasingly complex geopolitical era, we believe America’s energy companies, and not those of our adversaries, should continue leading the way.’
Meanwhile, AAA reported that the average national gas price in the U.S. rose by 27 cents to $3.25 as of March 5 since the Iran conflict began.
As of March 11, AAA’s calculations put the national gas price average at nearly $3.58.