Russia’s Lukoil plans sale of international assets in response to planned US sanctions

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Russian oil company Lukoil plans to sell its international assets to U.S. private equity firm Carlyle Group, Lukoil said Thursday, as it rushes to divest its global portfolio in the face of impending U.S. sanctions.

The U.S. Treasury gave Lukoil until Feb. 28 to sell its foreign assets in response to sanctions imposed by U.S. President Donald Trump to push for a ceasefire in Russia’s war on Ukraine.

Lukoil didn't give further details on the value of the deal, but said in a statement that it wouldn't include the company’s assets in Kazakhstan.

The sale still requires approval from the U.S. Office of Foreign Assets Control, which administers sanctions. In the meantime, Lukoil said that it would continue negotiations with other prospective buyers.

Carlyle Group said in a statement that its approach to Lukoil International would be on ensuring operational continuity and preserving jobs. It also said that it recognized the assets' “critical importance to nations’ infrastructure and domestic energy security.”

When asked about the deal, the Kremlin said that it couldn't comment on corporate agreements.

"For us, the most important thing is that the interests of the Russian company involved are protected and respected," Kremlin spokesman Dmitry Peskov said Thursday.

Swiss commodities trading firm Gunvor previously announced its proposals to buy Lukoil’s assets in October, but later withdrew its offer after being called “the Kremlin’s puppet” by the U.S. — an accusation that the Geneva-based company rejected.

In an X post on Nov. 6, the U.S. Treasury Department alluded to Russian President Vladimir Putin’s decision to send Russian troops to launch an all-out invasion of Ukraine on Feb. 24, 2022, and Trump’s efforts to end the war.

“President Trump has been clear that the war must end immediately,” the department’s post on X said. “As long as Putin continues the senseless killings, the Kremlin’s puppet, Gunvor, will never get a license to operate and profit.”

Lukoil has stakes in oil and gas projects in 11 countries. It has refineries in Bulgaria and Romania and a 45% stake in a refinery in the Netherlands, as well as gas stations in a number of countries.

Trump announced new sanctions against Lukoil and Rosneft, Russia’s two biggest oil companies, on Oct. 22. Together, the two companies account for roughly half of the country’s oil exports, providing a major source of government revenue.

The sanctions make it difficult for Lukoil and Rosneft to do business outside of Russia. In addition to barring U.S. businesses from dealing with the two companies, the sanctions carry the threat of secondary sanctions on foreign banks that handle their transactions.