Lukoil to sell foreign assets after US sanctions
Lukoil, one of Russia's largest oil producers, said it plans to sell its foreign assets following new U.S. sanctions targeting the company and its subsidiaries.
"PJSC Lukoil informs that owing to introduction of restrictive measures against the company and its subsidiaries by some states, the company announces its intention to sell its international assets," Lukoil said in a statement published on its website.
The company added that it is currently reviewing bids from potential buyers.
The recent U.S. sanctions, announced on Oct. 22, target Russia's two largest oil companies — Rosneft and Lukoil — along with dozens of their subsidiaries, effectively freezing all U.S.-based assets of those companies.
The sanctions also open the door for secondary penalties against foreign institutions that handle transactions with those on the blacklist.
U.S. President Donald Trump imposed the sanctions after the collapse of preparations for a high-level summit with Russian President Vladimir Putin in Budapest. Trump later said he would not meet his Russian counterpart without a clear path to a peace agreement in Ukraine.
Lukoil and Rosneft are critical parts of Russia's economy. Together, they account for nearly half of the country's crude-oil exports — approximately 3 million barrels per day. As the country's largest private energy company, Lukoil accounts for roughly 15% of the national output and 2% of the global production.
The new restrictions extend far beyond the parent firms, covering six Lukoil subsidiaries and 28 Rosneft enterprises. Among them is Lukoil-Western Siberia, which alone accounts for around 40% of the company's hydrocarbon production.
Kyiv has long encouraged its allies to sanction Russia's energy sector, arguing that depriving Moscow of oil revenues would limit its ability to finance its war against Ukraine.
Tim Zadorozhnyy
