Lukoil’s US Arm Turns to Tiny Banks as Sanctions Roil Financing

Lukoil North America, the US arm of sanctioned Russian oil giant Lukoil PJSC, is relying on two small New Jersey banks to keep its gas stations afloat after losing financing.

The company is now working with OceanFirst Bank NA and Parke Bancorp to handle some of its transactions, according to people familiar with the matter. Lukoil North America had been searching for a banking replacement since BCB Bancorp Inc cut ties with the company after the US imposed sanctions against its parent on Oct. 22, the people said, asking not to be named discussing internal business. The company also once relied on Citibank NA but the relationship ended after Russia’s 2022 invasion of Ukraine, the people said.