US Lukoil-branded gas stations face major card payment outages amid sanctions

Lukoil-branded gas stations in the United States, most of which operate under franchise agreements in New Jersey, have experienced major disruptions in credit, debit and prepaid card payments. The issue stems from US sanctions against Lukoil’s Russian parent company, Bloomberg reported.

Franchisees currently cannot access revenue from card transactions processed through Lukoil’s payment system, and some payments — particularly those made with American Express cards — are not being processed at all.

As a result, some stations have begun asking customers to pay in cash, and one franchisee is even considering switching to a cash-only model.

The Office of Foreign Assets Control (OFAC) has issued a temporary license allowing payments to continue until December 13, but procedures after that date remain unclear. Lukoil also prohibits franchisees from rerouting payments through third-party terminals, warning that this would violate franchise agreements and could lead to termination.

New Jersey has more than 110 Lukoil-branded stations — about 60% of the company’s US network — and card payments typically account for up to 85% of sales.

• On November 19, it was also reported that Lukoil stations in Finland began to shut down due to sanctions.
• According to the Financial Times, Lukoil may lose foreign assets worth up to €14 billion as a result of the restrictions.